26 Jun THREE (3) PERSONAL TRAINERS AT AN UPSCALE HEALTH SPA / RESORT IN SEDONA, ARIZONA, WANT TO START A HEALTH CLUB THAT SPECIALIZES IN HEALTH PLANS FOR PEOPLE IN THE 50+ AGE RANGE.
Three (3) personal trainers at an upscale health spa / resort in Sedona, Arizona, want to start a health club that specializes in health plans for people in the 50+ age range. The trainers Donna Rinaldi, Rich Evans, and Tammy Booth are convinced that they can profitably operate their own club. They believe that the growing population in this age range, combined with strong consumer interest in the health benefits of physical activity, would support the new venture. In addition to many other decisions, they need to determine the type of business organization that they want to form: incorporate as a corporation or form a partnership. Rich believes there are more advantages to the corporate form than a partnership, but he has not convinced Donna and Tammy of this. The three (3) have come to you, a small-business consulting specialist, seeking information and advice regarding the appropriate choice of formation for their business. They are considering both the partnership and corporation formation options.Assume the trainers determine that forming a corporation is the best option. Net, Donna, Rich, and Tammy need to decide on strategies geared toward obtaining financing for renovation and equipment. They have a grasp of the difference between equity securities and debt securities, but do not understand the ta, net income, and earnings per share consequences of equity versus debt financing on the future of their business. They have asked you, the CPA, for your opinion.Write a two to three (2-3) page paper in which you:Provide a summary to the partners, outlining the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation. Recommend which option they should pursue. Justify your response. Eplain the major differences between equity and debt financing, and discuss the primary ways in which each would affect the future of the partners’ business.Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources. Professor kern on Wed, 2014-11-19 16:04 286 4.79021: 15.00 Assignment: Business Formation body preview (0 words)file1.doc preview (927 words) * �1�Student’ ’ Name TitleDate SubmissionA is of two more pool money, skills, along with other and share and in with terms conditions the partnership (Gage and 138). of noneistence agreement, a is implicated to the participants in venture agree to risks rewards proportionately. A business partner a which an additional commercial has some form of coalition. sole from cronies themselves. In an all-purpose partnership, for eample, as well as losses all way to partners’ proceeds. The are advantages of business First, partnerships relatively easy to It – – – more tet follows – – – Engineer Maw… on Mon, 2016-02-22 06:08 132 3.76515 7.99 A++ PERFECTLY DONE body preview (0 words)file1.doc preview (1028 words) BUSINESS Formation’ Name and NumberInstitutional Business a would give my on the form organization Donna, Rich, and case partnership a corporation. But, giving the opinion the of the advantages disadvantages each of business organization.PartnershipPartnership is a organization where people come and contribute funds, and the business and and losses accordance the terms between It formed a two and of twenty people.Advantages Easy to establish and start costs and of limited limited control – – – more tet follows – – – file2.doc preview (678 words) Business Formation’s NameCourse and DateBusiness to business people in business either a partnership. Three members Donna Rinaldi, Evans, Tammy are a club but which business relationship to and disadvantages of discussed a In a partnership generated pumped the hence good i.e. nearly needs. two where two or more together, collect and put into action. makes Decision making big deal – – – more tet follows – – – Good_Morning on Tue, 2015-08-18 11:44 208 3.697115 10.00 Legal Ownership body preview (2 words)Legal Ownershipfile1.doc preview (837 words) Ownership 1 Ownership Name UniversityDate Ownership proprietorship in United States legal ownership. this type of one person involved and the only just a simple person army. There no mandate for type of ownership. is easiest of the ownership in the country there is that person to can safely requirement the to be filed the Schedule partnership type of legal the In is requirement for than 1 person unlike sole proprietorship. – – – more tet follows – – –
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