C Corporations, S Corporations, and LLCs

C Corporations
Benefits
1. Corporations can utilize corporate benefit health plans, which often offer better retirement options and benefits than those offered by noncorporate plans
2. If a stockholder dies or wishes to sell out, the corporation still continues

Disadvantage
1. It takes more time and effort to maintain
2. It's costlier to start than a sole proprietorship or partnership
3. http://www.allbusiness.com/business-planning/business-structures-corporations/2515-1.html

S Corporations
Benefits 1. You can have the protection of limited personal liability without having to pay corporate taxes.
2. You can minimize self-employment tax and FICA tax. Your profits, as a shareholder, are not taxed in this manner.

Disadvantage
1. Like a C Corporation, it can be costly to set up and follow corporate formalities.
2. Numerous regulations and requirements must be upheld by an S Corporation, including a limit on the number of shareholders.
3. http://www.allbusiness.com/business-planning/business-structures-corporations/2516-1.html

LLCs
Benefits
1. Owners have limited personal liability for business debts even if they participate in management
2. Profit and loss can be allocated differently than ownership interests

Disadvantage
1. More expensive to create than partnership or sole proprietorship
2. State laws for creating (LLC) may not reflect latest federal tax changes
3. http://www.residual-rewards.com/llc-advantages-disadvantages.html

Enron

In this article accouting firm Arthur Anderson was the main suspect. Nancy Temple, the Chicago-based lawyer was also to blame for this fraud. She was known as the "corrupt persuader" in this whole scandal. Just before authorites arrived they were guilty of shredding paperwork. After many days of deciding the jurors shut down the firm and clients started leaving. They didnt believe the $1 billion loss wasnt enough to make an impact on Enron in the future.

Sarah Tesik - Had the FASB rule on expensing stock options passed, would that have been some deterrent to what Enron ultimately did?

This article stated that Enron did everything it could to protect and hidden the illegal things they did. It seems that they tried as hard to cover what they did up then if they would of did it the right way. Everyone in the business supported what they were doing and went along with it. To do this big of scam it takes a lot of help from many people and everyone must be quite.


http://www.pbs.org/wgbh/pages/frontline/shows/regulation/congress/

Financial Statement Analysis - Nike, Adidas

  (in millions)    Nike                 Adidas
1. Revenue  - $19,176.1         $10,381           
    Expenses -  $17,270           $4,390
Net Income -  $1,906.7            $5,991

2. Nike - .1% (Net Income) .9% (Expenses)
    Adidas - .6% (Net Income) .4% (Expenses)

3. Adidas has the better component percentage because it is higher.

On balance - SKY'S THE LIMIT

In this article LeRoy Schimdt is excited about the future and the CPAs. He has traveled many places over the past months and has been very impressed by the goals and dreams of strudents and faculty. I liked this article because it tells you that there is a future in business and just because the economy is bad that doesnt mean there wont be jobs. I also liked that he said what some students regret so students like us can avoid making that mistake. 
Schmidt, LeRoy C. "SKY'S THE LIMIT" On Balance. May/June 2006. Pg. 12

Fiscal Period - Nike

1. I picked Nike as my company to do this report on. I am familiar with what they sell and I wear Jordan shoes which they make.

2. Nikes fiscal period
3. Fiscal period is on May 31
4. They picked to end their fiscal period at this time because most of their sales are probably kids that play sports and by May most sports are over with and summer is starting.