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Financial Accounting III

I. Business EntitiesPartnerships and Corporations
Assume your company (AMAZON) 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. Support your answer.
B. How do disclosure requirements differ from a corporation to a partnership, and what information is required? Support your answer.
C. Are the shareholders at risk for any personal liability with the company set up as a corporation? Defend your response and support your answer.
D. If your company was set up as a partnership, would the partners be at risk for personal liability? Defend your response and support your answer.

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