B CRITICAL THINKING - DECISION MAKING ACROSS ORGANIZATION Kobe Bryant and Lebron James, two professionals in...

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B CRITICAL THINKING - DECISION MAKING ACROSS ORGANIZATION KobeBryant and Lebron James, two professionals in the finance area,have worked for San Miguel Leasing for a number of years.San MiguelLeasing is a company that leases high-tech medical equipment tohospitals.Kobe and Lebron have decided that, with their financialexpertise, they might start their own company to provide consultingservices to individuals interested in leasing equipment. One formof organization they are considering is a Partnership,(organization). If they start a partnership, each individual plansto contribute P500,000 in cash.In addition, Kobe has used IBMcomputer that originally cost P30,700 which he intends to invest inthe partnership. The computer has a present market value ofP15,000. Although both Kobe and Lebron are financial wizards, theydo not know how a partnership operates. As a result they have cometo you for advice. Instructions:
1 What are the major disadvantages of starting apartnership?
2 What type of document is needed for a partnership, and whatshould this document contain?
3 Both Kobe and Lebron plan to work full-time in the newpartnership.They believe that net income or net loss should beshared equally. However, they are wondering how they can providecompensation to Kobe for his additional investment of thecomputer.What would you tell/(advice) them?
4 Kobe is not sure how the computer equipment should be reportedon his tax return. What would you tell him?
5 As indicated above, Kobe and Lebron have worked together for anumber of years. Kobe's skills complement Lebron and vice versa. Ifone of them dies, it will be very difficult for the other tomaintain the business not to mention the difficulty of paying thedeceased partner's estate for his partnership interest.What wouldyou advise them to do?

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Major disadvantages of starting a partnership include Unlimited liability for debts all the partners of a partnership firm are jointly and severally liable for all the debts of a partnership firm It means in case a partner turns out to be bankrupt than in that case the other partner will be required to pay off all the liabilities of both the partners Each partner is See Answer

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B CRITICAL THINKING - DECISION MAKING ACROSS ORGANIZATION KobeBryant and Lebron James, two professionals in the finance area,have worked for San Miguel Leasing for a number of years.San MiguelLeasing is a company that leases high-tech medical equipment tohospitals.Kobe and Lebron have decided that, with their financialexpertise, they might start their own company to provide consultingservices to individuals interested in leasing equipment. One formof organization they are considering is a Partnership,(organization). If they start a partnership, each individual plansto contribute P500,000 in cash.In addition, Kobe has used IBMcomputer that originally cost P30,700 which he intends to invest inthe partnership. The computer has a present market value ofP15,000. Although both Kobe and Lebron are financial wizards, theydo not know how a partnership operates. As a result they have cometo you for advice. Instructions:1 What are the major disadvantages of starting apartnership?2 What type of document is needed for a partnership, and whatshould this document contain?3 Both Kobe and Lebron plan to work full-time in the newpartnership.They believe that net income or net loss should beshared equally. However, they are wondering how they can providecompensation to Kobe for his additional investment of thecomputer.What would you tell/(advice) them?4 Kobe is not sure how the computer equipment should be reportedon his tax return. What would you tell him?5 As indicated above, Kobe and Lebron have worked together for anumber of years. Kobe's skills complement Lebron and vice versa. Ifone of them dies, it will be very difficult for the other tomaintain the business not to mention the difficulty of paying thedeceased partner's estate for his partnership interest.What wouldyou advise them to do?