Wealth Creation

Question 1

What benefits the non aboriginal entity in a partnership?

Answer 1

Access to new markets, political capital, demographics (un used labour market) financial growth, succession planning

Question 2

What is the tower of payroll look like?

Answer 2

Secured creditors first 
Unsecured creditors - employees, tax
Sustaining growth expenses
Growth 
Dividends
Owners

Question 3

What are the three legal structures?

Answer 3

Sole proprietorship
Partnerships
Corporations

Question 4

What are pros and cons of a limits liability partnership?

Answer 4

• the fn would hold the debt of the partnership to an extent
  +99.9% of income is non taxable because it is fn, .01% is taxed under the corporation
  + corporation has defined goals, set purpose
  + more permanent in nature

Question 5

Tell me about a joint venture?

Answer 5

Common when there is only one dominant industry partner
Usually project oriented
Compensation for capital employed
Contracted instead of business relationship
Easy to get into and exit

Question 6

What is the difference between a partnership and a joint venture?

Answer 6

A partnership generally involves an ongoing, long term relationship, where a joint venture in created for one business opportunity or project

Question 7

What quote should you know?

Answer 7

Good paper makes good friends

Question 8

What is a unanimous shareholder agreement (USA)?

Answer 8

There is a board of directors

Major decision requirements are management vs board vs stare holders

Question 9

What is a partnership agreement?

Answer 9

Cash distributions

Cash calls

Question 10

Why should a FN partner? What do they gain?

Answer 10

• gives own source revenue
• brings credibility by having management expertise on the partners side, and the fn can participate in the business making process
• there are potential training opportunities