Explain the Similarities and Differences Among the Types of Legal

question 35

Essay

Explain the similarities and differences among the types of legal structures: sole proprietorships, general and limited partnerships, C and S corporations, and limited liability companies. Identifies the benefits and drawbacks of each.

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Definitions:

Agency Conflicts

Disagreements between management and shareholders over the best interests of the corporation, often leading to decisions that benefit management at the expense of shareholders.

Income Trusts

Income trusts are investment vehicles that hold income-producing assets and distribute the income earned to the holders, commonly used in sectors like real estate and natural resources.

Free Cash Flow (FCF)

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Operating Expenses

These are costs associated with the day-to-day operations of a business, excluding costs of goods sold, taxes, and interest expenses.