Business Assignment | Online Homework Help

NO SOURCES REQUIRED JUST BACKGROUND INFORMATION
A.) Barry Constantine was the owner of a small business called the Scone Stone, which he
operated as a sole proprietorship. He applied for a $100,000 loan from Wells Fargo.
Shortly after applying he received a letter from Wells Fargo saying: “Dear Mr.
Constantine, Congratulations, your company has been approved for $100,000.00 loan”.
He closed on the loan and accepted the $100,000.00. For the next four years statements
were sent to him addressed:
“ To: Barry Constantine, d/b/a The Scone Stone”. When business went bad, payments on
the loan stopped. Wells Fargo sued Barry Constantine d/b/a The Scone Stone.
Will Barry be personally liable for the Debt? Why or why not?
If Barry is liable, what assets can be used to satisfy the debt?
B.) Creel, Lilly and Altizar formed Joe’s Racing, a general partnership to distribute Nascar
memorabilia. They executed a written partnership agreement which includes the
following provision: “The death of a partner will cause a termination of the partnership,
and the deceased partner’s share shall go to his wife.” Several days after Creel’s untimely
death, his widow came into the office demanding to be allowed to participate in the
operation of the business, and claiming that she is entitled to future profits of the
partnership.
Please explain whether she is entitled to step into her husband’s shoes, as a partner or not.
What “interest” does she actually inherit from her husband?
Do you think this is a fare result?
C.) Please explain how each of the 3 most common forms of business organizations, Sole
Proprietorship, General Partnership, and Corporation, is treated for federal income tax
purposes.