Identify what kind partnership each of the following businesses is using as its
ID: 442270 • Letter: I
Question
Identify what kind partnership each of the following businesses is using as its legal form of business:
Sunoco Logistics is a type of partnership that is traded on a stock exchange
Joe Allen invested in his friend Jose's business, but he doesn't have any management responsibilities.
Dave Pardo and his partner Bettina Gregory both stand to lose a lot of money if their business goes under, as they are both responsible for the debt the business has undertaken.
Even though any of us could buy stock in Perkins Family Restaurant, the company is taxed like a partnership.
When Terry Esser invested in Dave and Bettina's company, she figured it was a minimal risk, because she (Terry) isn't active in the business and would only stand to lose what she invested if the company didn't make it.
Randy Ford and Marty Dietrich have agreed to spend all their time managing the business they have just started.
Partners in the now defunct Arthur Andersen who were not involved in the Enron scandal could expect to be exempt from losses incurred by guilty partners because Arthur Andersen is this type of partnership.
9. KFC is a nationwide fast-food franchise. All prospective KFC franchise owners must go through an evaluation process, during which they must submit an application and site proposal for approval and submit to a personal interview in Louisville, KY, KFC's headquarters. Upon approval, KFC offers the franchisee a training program covering management functions such as accounting, sales, advertising and purchasing. KFC pays a portion of this training program. KFC makes an advertising, and promotion kit available to the franchisee as well as opening assistance, equipment layout plans, and a choice of interior decor from a list they provide. In addition to standard menu items, a franchisee may offer other items upon approval from KFC management. KFC outlines the estimated cash requirements for opening for such things as equipment, insurance payments, utility down payments, as well as for the facility itself to give franchisees an idea of their cash needs. The franchise fee and the costs of the building and land are the responsibility of the franchisee. There is a royalty rate based on a percentage of gross sales, which is paid on a regular basis to KFC for continuing franchises. KFC advertises on nationwide television on behalf of its franchisees, so local owners do not have to develop their own television advertising. The local owners do pay a percentage of their gross sales to KFC as a national advertising fee, and each franchisee is required to spend an additional percentage for local advertising.
Explanation / Answer
1.Master Limited Partnership Sunoco Logistics is a type of partnership that is traded on a stock exchange.
2.Limited partnership Joe Allen invested in his friend Jose's business, but he doesn't have any management responsibilities.
3.General partnership Dave Pardo and his partner Bettina Gregory both stand to lose a lot of money if their business goes under, as they are both responsible for the debt the business has undertaken.
9.This explaination tells us the benefits of owning a franchise.We all know that KFC is a brand name which almost guarantees an established customer base.KFC itself provides management trainging,offer advice with opening the food court for such thing as interior decoration,giving advertisements etc.It also has some drawbacks like franchise fees which is very high.Franchise has to give some royalty to KFC.
4.Master Limited Partnership Even though any of us could buy stock in Perkins Family Restaurant, the company is taxed like a partnership.
5.Limited partnership When Terry Esser invested in Dave and Bettina's company, she figured it was a minimal risk, because she (Terry) isn't active in the business and would only stand to lose what she invested if the company didn't make it.
6.General partnership Randy Ford and Marty Dietrich have agreed to spend all their time managing the business they have just started.
7.Limited Liability partnership Partners in the now defunct Arthur Andersen who were not involved in the Enron scandal could expect to be exempt from losses incurred by guilty partners because Arthur Andersen is this type of partnership.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.