Kirk Is Establishing a Business in 2013 Which Could Have

question 9

Essay

Kirk is establishing a business in 2013 which could have potential environmental liability problems.Therefore,he is trying to decide between the C corporation form and the S corporation form.He projects that the business will generate losses of approximately $100,000 each year for the first 3 years and then will generate profits of at least $200,000 each year thereafter.All profits will be reinvested in the growth of the business.Kirk projects he will be in the 35% bracket in 2013 and thereafter.Advise Kirk on which tax form he should select.

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Definitions:

Kohlberg's Moral Development

A theory proposing that moral reasoning, the basis for ethical behavior, has six identifiable developmental stages, each more adequate at responding to moral dilemmas than its predecessor.

Excessive Force

The use of force greater than what is necessary to achieve a legitimate law enforcement objective or to maintain control.

Punishment

The imposition of a penalty as retribution for an offense, often intended as a deterrent to undesirable behavior.

Peacemaking Criminology

An approach to criminology that focuses on reducing crime and violence through peaceful, cooperative strategies rather than punishment and repression.