For the final project, you will continue to work with the retail company that you chose in ACC 610 or, if you transferred into ACC 620, you will continue with the retail company you chose from the following options: Wal-Mart, Target, Sears, Kroger, or Amazon. You have adopted this company to apply learning concepts in authentic scenarios. For this project, you will conclude the portfolio that you have been assembling throughout the financial reporting series.
This is the first of three milestone assignments that will lead to completion of your course project. In this assignment, you will complete Section I of the final project. You will prepare a Word document that addresses the critical elements below. Make sure you answer each question in a substantive way and defend your content with at least one scholarly source other than your textbook. You will want to pay close attention to the grading rubric in order to make sure you meet the exemplary level in each requirement.
Specifically, the following critical elements must be addressed:
I. Business Entities—Partnerships and Corporations Assume your company is involved in a major lawsuit and the probable damages are estimated to be $2,000,000.
A. Describe the effects damage estimates would have on the financial statements of a corporation and a partnership.
B. How do disclosure requirements differ from a corporation to a partnership and what information is required?
C. Are the shareholders at risk for any personal liability with the company set up as a corporation? Defend your response.
D. If your company was set up as a partnership, would the partners be at risk for personal liability? Defend your response.
Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. You should use at least one outside source other than the textbook. Sources should be cited according to APA style.