Finance-Week 1

Due to the recent meat recalls, Western Steakhouse is considering incorporating. Feldman, the owner, wants to protect his personal assets in the event the restaurant is used.

Which advantage of incorporating is most applicable? What are other advantages of organizing as a corporate entity? Discuss some of the disadvantages of organizing as a corporation.

How does the Sarbanes-Oxley Act (SOX) relate to internal controls?. Can you give a real-world example of a situation in which this relationship was absent and ultimately brought down the company?