Prepare a report (3-5 pages) that analyzes aspects of a potential partnership arrangement.
Introduction
In this assessment, you will investigate aspects of partnership formation, operation, and termination, as well as certain elements of the Securities and Exchange Commission’s reporting requirements pertaining to corporations.
Demonstration of Proficiency
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
Competency 1: Apply advanced accounting techniques to organizational situations.
Create a schedule showing how a partnership income would be allocated to each of the partners using interest allowances and salary allowances.
Create a schedule showing how a partnership loss would be allocated to each of the two partners to make loss-sharing as fair as possible.
Discuss how the Securities and Exchange Commission’s segment reporting requirements apply to corporations.
Competency 4: Apply quantitative models to create and manage budgets and forecasts and evaluate budget performance.
Create a schedule that shows how partnership assets would be allocated in the event of a liquidation.
Competency 5: Communicate in a manner that is professional and consistent with expectations for members of the business professions.
Communicate in a manner that is professional and consistent with expectations for members of the business professions.
Scenario
A client of yours is considering going into a partnership with a business associate. The partnership would own a retail gourmet ice cream shop. Your client anticipates investing $150,000 and working ten hours a week. His business associate will invest $50,000 and work forty hours a week. Your client has requested your informed perspective on a number of items before he commits to the business partnership.
Your Role
You are a self-employed accountant.
Requirements
Your client has requested the following be included in a report (3-5 pages) that he can study while considering how to approach this business opportunity:
Your client does not think that splitting the partnership income 50-50 will be fair to either partner. He has asked you to recommend clauses in the partnership agreement that stipulate partnership income and loss allocations.
Create a recommended income allocation schedule using interest allowances at 10 percent a year and salary allowances at $25 an hour. For the sake of example, assume partnership income of $100,000.
Create a recommended loss allocation schedule. For the sake of example, assume partnership losses of $40,000.
Your client would also like you to create a schedule that shows what happens if this partnership is successful and the two partners agree to sell the company in 10 years.
For the sake of this calculation, pretend that the partnership’s assets in 10 years are $900,000, liabilities are $200,000, your client’s capital is $400,000 and his associate’s capital is $300,000.
Pretend that the partnership assets are sold for $1,200,000, and the liabilities are settled for the existing value of $200,000.
The company’s flagship location would be in Buffalo, New York, but the potential partners have already discussed opening additional locations in Toronto, Canada. The client knows that as a partnership they would not have to meet the Securities and Exchange Commission’s segment reporting requirements, but the client wants to know what happens if they reorganize as a corporation when they move into the Canadian market. Discuss how the Securities and Exchange Commission’s segment reporting requirements apply to corporations.
Deliverable Format
Since you plan to deliver this report to a paying client, you want this document to be clear, well-organized, and readable. You decide that the report should be 4–6 pages so that you have enough space to respond to your client’s concerns and provide some scholarly and/or professional context.
Communication: Communicate in a manner that is scholarly, professional, and consistent with the needs and expectations of your client. Professional standards dictate that your work be original and free of errors that detract from the overall message.
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.
It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>
