...Business Entities Jessica Perez BUS 311 Business Law Instructor: Janet Fiorentino 12/1/2014 As the manager of Acme Fireworks, I need to gather information to help the owner determine whether or not he should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation. I am the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed me that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he...
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...liquidation statutes commonly include camouflage of benefits, disguise or annihilation of reports, irreconcilable situations, deceitful cases, false articulations or revelations, and charge settling or redistribution courses of action. Distortions on chapter 11 structures regularly constitute prevarication. Different filings are not all by themselves criminal, but rather they may abuse procurements of chapter 11 laws. In the U.S., insolvency misrepresentation statutes are especially centered on the mental condition of specific activities. Chapter 11 misrepresentation is a government wrongdoing in the United States. The stream of insolvency laws can be segregated chiefly under two heads: Personal Insolvency, which deals with individuals and partnership firms governed by Provisional Insolvency Act, 1920 and Presidency Towns Insolvency Act, 1908 and Corporate Insolvency, whose consequence is winding up of the company under the Companies Act, 1956. Under the Constitution of India ‘Bankruptcy & Insolvency’ is Entry 9 in List III - Concurrent List, (Article 246 –Seventh Schedule to the Constitution)1 i.e. both Center and State Governments can make laws relating to this subject. I. Insolvency Laws of India In connection of corporate laws, "indebtedness" has nor been utilized nor characterized as a part of India. Be that as it may, Section 433 (e)2 of the Companies Act, 1956 spreads an organization, which is "not able to pay its obligations", and hence constitutes a ground for twisting up of...
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