Martha New Business Concept Discussion Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Martha New Business Concept Discussion Assignment
Martha, a single individual, has come to you with a new business concept. She has created a unique type of glove that runners can use for taking their vitals while working out. The glove also sends runners alerts and automatically posts running information for them on social media websites. She has tested the gloves on various platforms and they not only worked but have garnered strong interest among her friends and colleagues. With this encouragement, Martha has decided to form a company to further develop and market her product. The business will be called “IN TOUCH.”
Martha understands that it will take time for the business to become profitable. She would like to grow her business and perhaps at some point go public or at some point sell the business to a large retailer.
Martha decided to quit her full-time job so that she could focus all efforts on the new business. Martha had some savings to support herself for a while, but she did not have any other source of income. She was able to recruit Sarah and Amilcar to join her as initial equity investors in IN TOUCH. Sarah has an MBA and a law degree. Sarah was employed as a business consultant when she decided to leave that job and work with Martha and Amilcar. Sarah’s husband earns close to $300,000 a year as an engineer (employee).
Amilcar owns a very profitable used car business. Because buying and selling used cars takes all his time, he is interested in becoming only a passive IN TOUCH investor. He wanted to get in on the ground floor because he really likes the product and believes IN TOUCH will be wildly successful. While IN TOUCH originally has three investors, Martha and Sarah have plans to grow the business and seek more owners and capital in the future.
The three owners agreed that Martha would contribute land and cash for a 30 percent interest in IN TOUCH, Sarah would contribute services (legal and business advisory) for the first two years for a 30 percent interest, and Amilcar would contribute cash for a 40 percent interest. The plan called for Martha and Sarah to be actively involved in managing the business while Amilcar would not be an active manager.
The three equity owners’ contributions are summarized as follows:
Martha Contributed FMV Adjusted Basis
Ownership Interest
Land (held as investment) $120,000 $70,000 30% Cash $30,000 Sarah Contributed Services $150,000 30% Amilcar Contributed Cash $200,000 40% Working together, Martha and Sarah made the following five-year income and loss projections for IN TOUCH. They anticipate the business will be profitable and that it will continue to grow after the first five years.
In Touch Software 5-Year Income and Loss Projections
Year Income (Loss)
1 ($200,000) 2 ($80,000) 3 ($20,000) 4 $60,000 5 $180,000 To get the business activities started, Martha and Sarah determined IN TOUCH would need to borrow $800,000 to purchase a building to house its manufacturing facilities and its administrative offices (at least for now). Also, in need of additional cash, Martha and Sarah arranged to have IN TOUCH borrow $300,000 from a local bank and to borrow $200,000 cash from Amilcar. IN TOUCH would pay Amilcar a market rate of interest on the loan but there was no fixed date for principal repayment.
Martha is unsure where she wants to locate the business. She lives in D.C., but is considering Virginia, Maryland, and DC as possible business locations.
Question:
Provide a list of the significant tax and nontax issues, considerations and concerns that may differ across entity types (LLC taxed as a partnership, S corporation, Partnership, C corporation); and discuss how they are relevant to the choice of entity decision for IN TOUCH. You do not need to provide detailed computations for the business itself, but rather need only identify and provide a short description of the tax and non-tax issues in your list. Computations should be provided only if they are relevant to an issue (e.g., if a tax issue were to arise based on a particular taxpayer’s income level, the computation might be relevant, or if a transaction results in a gain to which you are referring in your answer you can compute the amount of the gain). However, the primary focus of this problem will be on issue identification. Consider this document that you could use at a meeting Martha to discuss her business plans.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!