31 Jan A. Draw a conclusion about

Question
A.

Introduction

Wal-Mart is an American multinational retailing company that was founded back in 1969 and over the years has expanded its operations in United States, Canada, UK, Japan, and as ‘Best Price’ in India. In terms of revenue, the company is the largest according to Fortune Global 500. The number of locations for the store is recorded up to 11,545 (Walmart, 2016). The corporation operates through following channels:

?Discount stores

?Supermarkets

?Supercenters

?Hypermarkets

?Warehouse clubs

?Cash

?Carry stores

?Home improvement stores

?Specialty electronics stores

?Apparel stores

?Drug stores

?Convenience stores

?Membership-only warehouse clubs

?Retail Websites, such as walmart.com and samsclub.com (Company, 2016)

This report will look into the company at an advanced level and will differentiate between partnership and corporations, will study the effects of consolidation on financial statements for proper reporting, determine the effective strategies for estate planning to minimize tax liability, evaluate the need for trusts in various scenarios for income protection and lastly illustrate how insolvencies impact business entities and their related stakeholders for informing recommendations.

Business Entities- Partnership and Corporations

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

Consolidations of financial Statements

A. Based on research from your chosen company, explain the corporate structure in terms of consolidation. How is it organized from a consolidated viewpoint? What are the reasons for this particular type of organization?

B. How does the consolidation impact how the accounting information flows into the consolidated financial statement? Describe the process

C. Are there any income tax benefits from consolidating the financial statements of your company? Defend your response

Estate Planning

A. In terms of minimizing tax liability, how would estate planning differ from a partnership to a corporation?

B. For estate planning purposes, what are the advantages of setting your business up as a corporation versus a partnership? Defend your response

C. Describe your company’s succession plan and whether it aligns with your company’s vision.

D. Based on your responses, what estate planning strategy would be most effective in minimizing tax liability? Why?

Trusts

A. Draw a conclusion about the purpose of the company’s trust based on the research of your company.

B. Why would a small business owner want to set up a trust and how could it be used for estate planning purposes?

C. Evaluate the similarities and differences between trusts and corporations. In an attempt to protect income, which would be most suitable for a company?

Conclusion

A. As your company’s controller, compose a summary report to your CEO advising him on the effects of the insolvency.

B. From a global perspective, what effects would the insolvency of your company have on the U.S. economy as well as the global economy (i.e., other countries)?

C. Construct a worksheet for the CEO showing the effects of the insolvency of the company, shareholders, and creditors.