D 0 7 8 T as k 2 - L e g a l A n d E t h i c a l C o n s i d e r a t i o n s F o r F a r m e r ' s M a r k e t V e n t u r e |
Questions And Answers, Latest Update | 100% Correct Answers | Graded
Name: Samantha Matthews
Student ID (STUID): 010514440
Task 2: Legal and Ethical Considerations
A. Compare two of the proposed legal entity types for the farmer’s market venture by
doing the following:
1. Legal Entity Type 1.
(A1) Describe one of the legal entity types identified in the scenario (i.e., Corporation, Limited
Liability Company (LLC), or General Partnership) and then describe how it would affect each of
the following factors in the context of the farmers market:
Limited Liability is the best legal entity for the venture to open a new farmers’ market.
The local farmer is concerned about losing money if the business becomes unsuccessful, which
will limit that risk. This will give both parties in the business what they want: giving the retailer
the decision-making control he wants and limiting the financial risk for the farmer.
• taxation – By choosing Limited Liability as their legal entity, the owners would not have to pay
federal income taxes. They would only be responsible to pay taxes on their own profits made, the
other taxes would be passed out through the other members who will then file taxes through
personal income tax filing.
• liability – With Limited Liability, the local farmer and retailer will be protected from the
possibility of a huge monetary loss if the business venture does not go well.
• ownership and control – Both the retailer and the farmer share ownership and control of the
business equally. With them having equal shares in the company, they will have to make
decisions about business together, including involving investors and expansion of the business as
they continue to grow.
2. Legal Entity Type 2.
(A2) Describe one legal entity type identified in the scenario (i.e., Corporation, Limited Liability
Company (LLC), or General Partnership) that is different from the one described in part A1 and
then describe how it would affect each of the following factors in the context of the farmers
market:
Questions And Answers, Latest Update | 100% Correct Answers | Graded
Name: Samantha Matthews
Student ID (STUID): 010514440
Task 2: Legal and Ethical Considerations
A. Compare two of the proposed legal entity types for the farmer’s market venture by
doing the following:
1. Legal Entity Type 1.
(A1) Describe one of the legal entity types identified in the scenario (i.e., Corporation, Limited
Liability Company (LLC), or General Partnership) and then describe how it would affect each of
the following factors in the context of the farmers market:
Limited Liability is the best legal entity for the venture to open a new farmers’ market.
The local farmer is concerned about losing money if the business becomes unsuccessful, which
will limit that risk. This will give both parties in the business what they want: giving the retailer
the decision-making control he wants and limiting the financial risk for the farmer.
• taxation – By choosing Limited Liability as their legal entity, the owners would not have to pay
federal income taxes. They would only be responsible to pay taxes on their own profits made, the
other taxes would be passed out through the other members who will then file taxes through
personal income tax filing.
• liability – With Limited Liability, the local farmer and retailer will be protected from the
possibility of a huge monetary loss if the business venture does not go well.
• ownership and control – Both the retailer and the farmer share ownership and control of the
business equally. With them having equal shares in the company, they will have to make
decisions about business together, including involving investors and expansion of the business as
they continue to grow.
2. Legal Entity Type 2.
(A2) Describe one legal entity type identified in the scenario (i.e., Corporation, Limited Liability
Company (LLC), or General Partnership) that is different from the one described in part A1 and
then describe how it would affect each of the following factors in the context of the farmers
market:
