Author Question: If there is criminal activity in the common areas of a condominium or co-op, who would be liable for ... (Read 110 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
If there is criminal activity in the common areas of a condominium or co-op, who would be liable for any injuries that result?
 A) The criminals only
 B) The association if security was inadequate
 C) The association if it was aware of criminal conduct
 D) Both b and c
 E)None of the above

Question 2

The Miller family, who operates a musical instrument manufacturing concern, has decided to incorporate. The three (3 ) members of the Miller family, Mary, Mark and Sue, would like to become a corporation and obtain limited liability; however, taxation at the corporate level would be very costly for them. If possible, Mary Miller would rather be taxed as a partnership. Mark Miller is worried about the additional paperwork and meetings that incorporation would surely bring. Sue Miller does not want a large board of directors to be formed. Sue fears that the board would somehow detract from the family goals and orientation the business has always enjoyed. In light of these concerns, is there a corporate form that would better suit the Miller family?



elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

D

Answer to Question 2

Yes. When a small family company decides to incorporate, the form often selected is that of a close corporation. In a close corporation, the shares are held by one shareholder or a closely-knit group of shareholders. The stock would not be publicly traded. Statutes are quite liberal toward the formation of close corporations. The board of directors could consist of one individual, and the requirement of formal meetings would be eliminated. A close corporation could also seek the status of a Subchapter S corporation. In a Subchapter S corporation, the business would be afforded limited liability and yet would be taxed as a partnership. The combination of a close and a Subchapter S corporate form would satisfy the needs and concerns of the Miller family.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

For a complete list of videos, visit our video library