General Partnerships

b) There are several advantages to general partnerships which Koch and his future partners should be aware of. These include shared financial commitment; the ability to pool resources, expertise and strengths; limiting of start up costs; and few formalities in setting up the partnership (Advantages, 2006). The partners share assets, profits, liabilities and the management of the business. General partners are taxed in the same manner as sole proprietors, so that each partner can include business income on his/her personal income tax return, and each partner can deduct pro rata losses from the business on their own individual tax return. General partnerships are usually less expensive to establish and require less paperwork and formality than corporations.

c) Koch and his future partners should also be aware

. . .
inancial activities of the company became public knowledge, there would be a backlash in the press, and the CEO would lose credibility. He would probably have to resign from the board because of his deceptive actions, particularly with the increased scrutiny now because of all the corporate scandals which have been unearthed and all the stockholders who have lost millions because of unethical dealings of management. 6. Several risks are undertaken by KrispyKreme shareholders as management and employees work to position the company for long term success. One problem is competition in the market place from other doughnut shops and franchises, most of which make and sell a larger variety of donuts than KrispyKreme. Another is there diversion into the coffee market, and the opening of coffee and doughnut shops. With the tremendous competition from such well-founded coffee shops as Starbucks and Coffee Bean and Tea Leaf, coffee shop customers have become accustomed to having the choice of a large number of coffee drinks, particularly cappuccinos and lattes, and these customers are unlikely to change their coffee-buying habits. Coffee shops and doughnut shops cater to a different customer base. KrispyKreme will not be able to
. . .

Some common words found in the essay are:
, Forecasting Techniques, Tea Leaf, Retrieved Jan, Greene Crockett, Dog AIBO, MIT's Oxygen, Mills Inc, Agency Pentagon, Pasadena California, jan 26, jan 26 2006, retrieved jan, 26 2006, retrieved jan 26, debt securities, cash flow, securities classified, debt securities classified, net income, straight-line depreciation, company's net income, securities classified held-to-maturity, fair value, company's net,
Approximate Word count = 3473
Approximate Pages = 14 (250 words per page)