Business Law Week 7 Assignments

Forms of Business OrganizationsPart IThe main forms of demarcation shapings argon sole copyrighted partnership , and raftSole ownership is the simplest way to set and run handicraft , because a sole owner is the only responsible mortal for wholly comp both(prenominal) s debts and obligations . It is cognize that a creditor who has a drag against a sole proprietor has totally rights to receive all his personal and traffic assets . It is called un express liability . The sole proprietor is al dispiriteded to run his business under his own name without any other wordsAdvantages : all scratch be received by sole proprietor , relatively low simoleons-up be and heavy(p) , the greatest freedom from formula minimal working dandy , taxation enhancement advantages to owner of the business , owner has the direct management over the decision-making process . Disadvantages absolute liability , difficulties in bringing up gravid and lack of continuity in sole branded if the owner is absent for a long timePartnership is an agreement when both or much sides (persons ) are going to combine their in operation(p) resources in one business . Partnership agreement has to be signed with the assistance of lawyers , because in case of dissolution or disagreement the business should protect its shareholders or other partners . match to the agreement terms partners has to share in all the boodle . There are two forms of partnerships : general partnership (all partners are in person liable for all debts and obligations ) and limited partnership (some members are responsible for debtsAdvantages : easy formation , relatively low part-up costs , additional available resources of investments , potential tax advantages , limited regulation and broader base of circumspection . Disadvantages : divide d authority , unlimited liability , lack of ! continuity , difficulty in altitude capital and finding suitable partners , possible conflicts between the partnersCorporation is known to be a legal entity that is separate from its owners , the shareholders . Shareholders are non personally responsible for debts and obligations and acts taken . Corporation advise be either private or public .

Private weed can be formed by one or more persons and it is not allowed to share securities to the general public normal corporation issues securities and shares for public distribution .Advantages : limited liability , narrow down management , continuous existence , sep arate legal entity , possible tax advantages , easy rising of capital and ownership is on the table . Disadvantages : penny-pinching regulation , the most expensive form of organization , take aim restrictions , double taxation of dividends , conflicts between shareholders and executives , and great record keepingPart IIMy familiar and his few buddies are willing to start their own business It is a matter of fact that at that place are some(prenominal) forms of business organization they are able to start and it is essential to take pros and cons of each form very care fully as organizational forms plays crucial role in business training . I won t recommend my associate to go alone Instead , I ll recommend referring to partnership and , in my feel , it is the most appropriate form when starting raw(a) businessFirstly my brother should fully understand what the partnership is Actually , as it is mentioned in the first section...If you want to get a full essay, drift it on our website: ! BestEssayCheap.com

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