Find an article that discusses one of the topics in Module #4.?(not chapter (17) The date should be after the beginning of the semester. Give us a live link to the article and summar

Find an article that discusses one of the topics in Module #4. (not chapter (17)

The date should be after the beginning of the semester. Give us a live link to the article and summarize it.  Please describe the article and give its relation to the Module.  Tell me the chapter it is related to.  The subject should be the title of the article so it is easily identified.    I have it arranged so you cannot see other articles.  That way you do not have to worry about duplication.

This is a simple class discussion . I attached one of my classmate work so you can see a sample

melvin4e_ch14_ppt_accessible.pptx


melvin4e_ch16_ppt.pdf


melvin4e_ch15_ppt.pdf


307D5534-03DB-441A-A348-3F7557B0EFA9.jpeg

Limited Liability Companies and Limited Liability Partnerships

Chapter 14

© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

1

Learning Objectives 1

14-1 Identify the sources and levels of laws that govern L L C and L L P entities.

14-2 Explain the function of an operating agreement and the fundamental structure of an L L C.

14-3 Distinguish between the formation and management of an L L C and the formation and management of an L L P.

© McGraw Hill

2

Learning Objectives 2

14-4 Determine the rights of principals upon withdrawal from an L L C.

14-5 Articulate the legal protections from personal liability afforded to the principals in an L L C and L L P.

14-6 Identify the tax treatment schemes of an L L C and L L P.

14-7 Provide the primary methods for capitalizing limited liability entities.

© McGraw Hill

3

Chapter Overview

The background and laws related to operation of a limited liability company (L L C) and a limited liability partnership (L L P).

The legal liability of principals in an L L C and L L P.

© McGraw Hill

4

Overview of L L Cs and L L Ps

Prior to development of L L C/L L P, principals who wished to avoid double taxation of a corporation, but desired liability protection for their personal assets, had few choices.

L L Cs and L L Ps are similar in many ways to corporations and partnerships, but the legal terminology is different.

© McGraw Hill

5

Limited Liability Companies (L L Cs)

Limited liability company:

An entity whose primary characteristics are that it offers its principals the same amount of liability protection afforded to principals of a corporate form of entity.

Offers pass-through tax treatment for its principals without the restrictions on ownership and scope required for other pass-through entities.

© McGraw Hill

6

Formation of L L C 1

An L L C is formed by filing articles of organization (also called certificate of organization) with the state public filing official in the secretary of state’s corporation bureau.

A number of states also require a contemporaneous filing with tax authorities to notify them of the existence of the L L C.

© McGraw Hill

Perhaps look up state filing fee for L L C on computer in class, and compare to corporation.

7

Formation of L L C 2

L L Cs are frequently governed by agreement of the parties in the form of an operating agreement.

Operating agreements, similar to partnership agreements, cover many of the internal rules for the actual operation of the entity.

Structure of governance and responsibility of members.

Death, incapacity, and dissolution.

R U L L C A.

© McGraw Hill

8

Liability 1

An important feature of an L L C is the limited liability of its members.

L L C members are insulated from personal liability for any business debt or liability (contract or tort) if the venture fails.

© McGraw Hill

9

Liability 2

Two important factors moderate this limited liability.

Landlords and other creditors will often require a personal guarantee from the members whereby the members pledge personal assets to guarantee payment obligations of the business venture.

A court may discard the protection in a case where the court finds that fairness demands that the L L C members should compensate any damaged party when the entity is without resources to cover the full amount owed.

© McGraw Hill

10

Taxation 1

Another attractive advantage of an L L C is the various tax treatment alternatives.

Although many L L Cs are typically treated as a pass-through entity, the L L C’s members may also elect to be taxed as a corporation if they consider the corporate tax structure more favorable.

© McGraw Hill

11

Taxation 2

Advantages are primarily:

The ability to flow through to the investors the tax deductions and losses that are typically generated by an emerging company or a company with significant up-front debt.

The ability to distribute earnings without incurring double-level taxation.

© McGraw Hill

12

Capitalization 1

L L Cs are capitalized primarily through debt via private lenders or commercial lenders, or by selling equity ownership in the L L C itself.

The operating agreement of the L L C often controls the amount and methods of capitalizing the business.

© McGraw Hill

13

Management and Operation 1

In a member-managed L L C, the management structure of the entity is similar to that of a general partnership, with all the members having the authority to bind the business.

In a manager-managed L L C, a named manager generally has the day-to-day operational responsibilities, while the non-managing members are typically investors with little input on the course of business taken by the entity except for major decisions.

© McGraw Hill

14

Dissolution of L L Cs and Dissociation of Members

Dissolution:

A liquidation process triggered by an event that is specified in the operating agreement.

Dissociation:

Occurs when an individual member decides to exercise the right to withdraw from the partnership.

Remaining members may either continue the L L C or decide to trigger dissolution.

© McGraw Hill

15

Limited Liability Partnerships (L L Ps)

Danger of being a general partner is the potential liability for acts of other general partners, debts, and liabilities of the partnership itself.

L L P statutes provide partnerships with the protective shield ordinarily only afforded to limited partners or corporate shareholders.

© McGraw Hill

16

Formation

Limited liability partnerships are formed when members file a statement of qualification with the appropriate public official or state office.

The conversion of the partnership must be approved by a majority of the ownership.

© McGraw Hill

17

Liability 3

General idea behind being an L L P is that all partners have liability protection for debts and liabilities of the partnership, but some states impose conditions on these limits.

In cases where a partner has engaged in misconduct or tortious conduct (such as negligence), the L L P acts to shield the personal of assets of other partners—never the partner who committed the misconduct or negligence.

© McGraw Hill

18

Taxation 3

Because it is not a taxable entity, an L L P files an information return that informs federal and state tax authorities of the profits and losses of the L L P.

All income or losses are reported on the partners’ individual tax returns.

Any losses are deductible and may sometimes help to reduce taxes on other sources of revenue in the individual’s tax return.

© McGraw Hill

19

Capitalization 2

L L Ps are capitalized in the same way as a partnership: through debt via private or commercial lenders or by selling partnership equity for ownership in the L L P itself.

The partnership agreement of the L L P often controls the amount and methods of capitalizing the business and the procedures for collecting additional contributions from partners as necessary.

© McGraw Hill

20

Management and Operation 2

The day-to-day operations and powers of the partners are spelled out in the partnership agreement.

The election procedures, qualifications, compensation, meeting times, and other organizational matters are typically addressed in the partnership agreement.

© McGraw Hill

21

,

Regulation of Securities,

Corporate Governance, and Financial Markets

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Chapter Overview + ,”&(-#./0’1234(#34(5.1$&(16(%”&($’78#’9(#34( 5&.134#’9(5&.2’7%7&5(8#’/&%5(#34(%”&(‘1:&(16( ‘&02:#%1’9(#0&3.7&5(73(&361’.&8&3%

+ !:#55767.#%7135(16(5&.2’7%7&5(#34(‘2:&5(%”#%(‘&02:#%&( %”&7′(7552#3.&;(5#:&;(%’#4730(#34;(61′(<2#:767&4(=&3%2’&5;( $’1=74&(&>&8$%7135(6’18(.&’%#73(5&.2’7%7&5(:#?5 + @&0#:(8#34#%&5(#551.7#%&4(?7%”(.1’$1’#%&(01=&’3#3.&( #34(‘&02:#%713(16(%”&(-‘1#4&'(673#3.7#:(8#’/&%

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5&66*78902)&”:

Overview of the Securities Market

A&.2’7%7&5(%’#35#.%7135(1..2′(73(%?1(5&%%7305B( !” #$%&'()*+(,&*+(-%#.&)/&0$)1$&234)/%44%4&4%55&6()7)/+5& )443%4&+/8&(%)443%4&69&4%13()#)%4&#6&(+)4%&1+’)#+5.&+/8&

:” #$%&4%16/8+(,&*+(-%#.&)/&0$)1$&)/;%4#6(4&23,&+/8&4%55& )443%8&4%13()#)%4&+*6/7&#$%*4%5;%4″&

+ C1%”(16(%”&5&(8#’/&%5(#’&(01=&’3&4(-9(6&4&’#:(#34( 5%#%&(5&.2’7%7&5(:#?D

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Defining a Security + A%1./5(#34(-1345(#’&($&'”#$5(%”&(815%(?&::E/31?3( %9$&5(16(5&.2’7%7&5(%”#%(#’&(‘&02:#%&4(-9(6&4&’#:(#34( 5%#%&(:#?D

+ F3(#447%713;($#’%3&’5″7$(73%&’&5%5;(5%1./(1$%7135;( ?#”#3%5;(#0’&&8&3%5(%1(73=&5%;($#’%7.7$#%713(73(#($11:( 16(#55&%5;(25&(16(.’1?46234730(‘&512’.&5;(.&’%#73( %9$&5(16($’187551’9(31%&5;(#34(8#39(1%”&'( #”#30&8&3%5(%”#%(870″%(.18813:9(-&(.13574&’&4( 73=&5%8&3%5(#’&(#:51(‘&02:#%&4(-9(5&.2’7%7&5(:#?5D

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Defining a Security

+ A&.2’7%9( ! “#$%&#'()*+(#*%*,”*%&#’-.'()%”%/(0)-#%1&’&#1%)-+(*,&#1% 2&*,%”#%(3/(4*”*&-#%-5%/0-5&*%*,0-61,%*,(%(55-0*)%-5%”%*,&07% /”0*$

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Modern Application of the Howey Test

+ F3=&5%8&3%

+ !18813#:7%9

+ G’167%(H>$&.%#%7135

+ H661’%5(16(I%”&’5

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Parties in the Securities Market <$%&4%13()#)%4&*+(-%#&93/1#)6/4&#$(637$&#$%&)/#%(+1#)6/&69& #$(%%&’+(#)%4=&)/;%4#6(4.&)443%(4.&+/8&)/#%(*%8)+()%4″ 8 9#'()*-0) “0(%)((:&#1%”%0(*60#%50-+%*,(&0%&#'()*+(#*%;”)(7%-#% *,(%'”.6(%-5%*,(%)(460&*$<% 8 9))6(0) “0(%*,-)(%&#)*&*6*&-#)%”#7%(#*&*&()%*,”*%)(..%)(460&*&()%*-% &#'()*-0)<% 8 9#*(0+(7&”0&() “0(%5&#”#4&”.%&#)*&*6*&-#)%*,”*%/0-‘&7(%)(0’&4()% 5-0%&#'()*-0)%”#7%&))6(0)%0(.”*(7%*-%)(460&*&()%*0″#)”4*&-#)<

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Equity Instruments > ?6**6/&4#61-&@+546&1+55%8&16**6/&4$+(%4A. ! “#$%$&”‘($)”(“*+%$,(-.#”/($-(01,2″#$'(31′”4(-#($)”(5+//”#$( 0/-6%$13%&%$,(-6($)”(5-201#,7(

> B$)5%&16**6/&4#61-$658%(4&4$+(%&)/&#$%&'(69)#4.&#$%,&+546& 2%+(&#$%&7(%+#%4#&()4-&69&5644&2%1+34%&#$%,&+(%&#,’)1+55, 4326(8)/+#%&#6&+55&1(%8)#6(4&+/8&'(%9%((%8&4#61-$658%(4&)9& #$%&16(‘6(+#)6/&9)5%4&96(&2+/-(3’#1,&'(6#%1#)6/&6(&4)*’5,& 8)4465;%4&0)#$&5)*)#%8&+44%#4″

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Equity Instruments + G’&6&”&4(5%1./ ! =#%”.*(0#”*&'(%5-0+%-5%(>6&*$%*,”*%,”)%.())%0&):%*,”#% 4-++-#%)*-4:%;(4″6)(%&*%,”)%4(0*”&#%>6″)&?7(;*%5(“*60()%&)% /0(5(00(7%)*-4:<%

+ ,”&(-700&5%(#4=#3%#0&(16($’&6&”&4(5%1./(75(%”#%( $’&6&”&4(5%1./”1:4&’5(“#=&($’&6&’&3.&(’70″%5(1=&'( .18813(5%1./”1:4&’5(73(‘&.&7=730(47=74&345(6’18(%”&( .1’$1’#%713D

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5&66*78902)&”:

Debt Instruments ! “#$%&”$#()*$+,’) ! “#$”#%#&’%()($”*+,%#(‘*($)-(.)/0()(/#”‘),&(%1+(*2(+*&#-(3$”,&/,$)45( $41%()//”1#6(,&’#”#%'(*7#”()&()8″##691$*&(‘,+# $#”,*6:(

! -$*.’ ! 6#.'(,&%'”1+#&’%(‘;)'()”#(,%%1#6(.-()(/*”$*”)’,*&()&6()”#(%#/1″#6(.-( /#”‘),&()%%#’%(*2(‘;#(/*+$)&-:(

! /,0,*+1#,’ ! 1&%#/1″#6(6#.'(,&%'”1+#&’%(‘;)'()”#(,%%1#6(.-()(/*”$*”)’,*&()&6()”#( .)/0#6(.-(‘;#($4#68#(*2(‘;#(/*”$*”)’,*&<%(8#&#”)4(/”#6,’:(

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5&66*78902)&”:

Debt Instruments

+ C1345(#34(4&-&3%2’&5(‘&$’&5&3%(%”&(-1”1?730(16( 813&9(6’18(73=&5%1’5(%1(‘#75&(.#$7%#:D(

+ @#’0&'(.1’$1’#%7135($’&6&'(-1345(#5(#(8&%”14(16( 5$:7%%730(2$(7%5(:130E%&’8(4&-%;(#34(-:&34(%”&(25&(16( -1345(?7%”(.13=&3%713#:(-1”1?&’E:&34&'(J-#3/K(:1#35( 61′(5″1’%E%&’8(4&-%D

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5&66*78902)&”:

Peer-to-Peer Lending

+ G&&’E%1EG&&'(@&34730 ! “%5&0+%-55(0)%”%2(;?;”)(7%/.”*5-0+%*-%+”*4,%;-00-2(0)%2&*,% &#'()*-0)<%

+ L15%(16(%”&5&(:1#35(#’&(6234#8&3%#::9(235&.2’&4( $&’513#:(:1#35(6’18(#3(73=&5%1′(%1(13&(1′(81’&( $’73.7$#:5(16(#(-2573&55(=&3%2’&D(

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5&66*78902)&”:

Securities and Exchange Commission + A&.2’7%7&5(#34(H>.”#30&(!188755713JAH!K( ! *,(%5(7(0″.%”7+&#&)*0″*&'(%”1(#4$%4,”01(7%2&*,%06.(+”:&#1@% (#5-04(+(#*@%”#7%”7A67&4″*&-#%-5%5(7(0″.%)(460&*&()%.”2)<%

+ M3:7/&(8#39(#487375%’#%7=&(#0&3.7&5;(%”&(AH!(75(#3( 734&$&34&3%(#0&3.9(%”#%(41&5(31%(“#=&(#(5&#%(73(%”&( .#-73&%(#34(75(31%(52-N&.%(%1(47’&.%(.13%’1:(-9(%”&( $’&574&3%D

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5&66*78902)&”:

EDGAR + ,”&(3#%713#:(.:&#’730″125&(75(8#4&(#=#7:#-:&(%1(%”&( $2-:7.(%”‘120″(%”&(AH!O5(.18$2%&'(4#%#-#5&(/31?3( #5(HPQRSD(

+ F3(#447%713(%1(HPQRS;(%”&(AH!O5(?&-57%&(#:51(5&’=&5( #5(#(512′.&(16(7361’8#%713(%1(&42.#%&(73=&5%1’5(13( ’75/5(#34(AH!($’1.&42’&5D

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5&66*78902)&”:

The Securities Act of 1933

<$%&C%13()#)%4&D1#&69&!EFF&*+/8+#%4=& !” +&(%7)4#(+#)6/&9)5)/7&96(&+/,&;%/#3(%&4%55)/7&4%13()#)%4&#6& #$%&’325)1&

:” 1%(#+)/&8)415643(%4&16/1%(/)/7&#$%&)443%(G4&76;%(/+/1%& +/8&9)/+/1)+5&16/8)#)6/

F” CH?&6;%(4)7$#&6;%(&#$%&(%7)4#(+#)6/&+/8&)443+/1%&69& 4%13()#)%4″&

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5&66*78902)&”:

Registration

+ G’15$&.%25 ! &#*(#7(7%*-%1&'(%&#'()*-0)%”%0(“.&)*&4%’&(2%-5%*,(%&))6(0B)% ;6)&#())@%0&):%5″4*-0)@%5&#”#4&”.%/-)&*&-#@%5&#”#4&”.% )*”*(+(#*)@%”#7%7&)4.-)60()%4-#4(0#&#1%7&0(4*-0)@%-55&4(0)@% “#7%4-#*0-..&#1%),”0(,-.7(0)<

+ A2$$:&8&3%#:(7361’8#%713( ! 7-46+(#*)%”#7%)6//-0*)%*,(%/0-)/(4*6)<%

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5&66*78902)&”:

Exemptions from Registration + F3(1’4&'(%1(#5575%(-2573&55(=&3%2’&5(5&&/730(58#::&'( #8123%5(16(.#$7%#:(6’18(%”&($2-:7.(73=&5%8&3%( .188237%9;(%”&(5&.2’7%7&5(:#?5(#::1?(#(328-&'(16( &>&8$%7135(6’18(‘&075%’#%713(61′(58#::&'(7552&’5D

+ T1′(#(328-&'(16(&.13187.;(:&0#:;(#34(1%”&'($’#.%7.#:( ‘ᐏ(815%(-2573&55&5(166&'(%”&7′(5&.2’7%7&5(13(#3( &>&8$%(-#575D

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5&66*78902)&”:

The Securities Act of 1934

+ A&.2’7%7&5(H>.”#30&(R.%(16()UVW ! C(16.”*()%*,(%)”.(%-5%)(460&*&()%;(*2((#%&#'()*-0)%”5*(0 “#% &#'()*-0%/604,”)(7%&*%50-+%”%;6)&#())%(#*&*$%&))6(0<%

+ S&02:#%&5(-‘1/&’5;(4&#:&’5;(5&.2’7%7&5(#551.7#%7135;( -‘1/&’#0&(67’85;(#34(1%”&'(-2573&55(&3%7%7&5(%”#%(#’&( &30#0&4(73(%”&(5#:&(16(5&.2’7%7&5(-&%?&&3(73=&5%1’5D

!”#$%&'()*+*,-,.*/01%2345&66*78902)&”:;*<66* %&'()=*%>=>%?>8;*@”*%>#%”890)&”:*”%*8&=)%&A9)&”:* 3&)(“9)*)(>*#%&”%*3%&))>:*0”:=>:)*”B*/01%234

5&66*78902)&”:

Insider Trading + X”&3(#(.1’$1’#%&(73574&'(“#5(#..&55(%1(7361’8#%713( 31%(#=#7:#-:&(%1(%”&(0&3&’#:($2-:7.;(%”&(73574&'(8#9(31%( %’#4&(73(%”&7′(.18$#39O5(5%1./(13(%”&(-#575(16(%”&( 73574&(7361’8#%713D

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Securities Regulation by States: Blue-sky Laws

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The Sarbanes-Oxley (SOX) Act of 2002

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The post Find an article that discusses one of the topics in Module #4.?(not chapter (17) The date should be after the beginning of the semester. Give us a live link to the article and summar first appeared on Writeden.

Reference no: EM132069492

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