...Legal Underpinnings of Business Law Shawn Akey BUS670 Dr. Callaway September 22, 2014 Legal Underpinnings of Business Law During this week, the reading talked about the foundations of business law, including constitutional law as it applies to business, and a comparison of several common business organizational forms. Additionally, various ethical theories were introduced in order to provide perspective to various business outcomes. This paper will deliberate over a scenario raised during the course, concerning a case study on the Tinker & Tailor Home Security Service business and their current legal issues. Along with discussing the scenario, an explanation of each facet of it, as well as provide examples of each as they pertain to the real world will be included. The scenario focused on in this discussion is the creation of a matrix that lists each business, and compares and contrast personal liability exposure as an owner as a result of the lawsuit. For each business entity, analyze how the liability exposure might be limited as an owner. Examine the best business organizational form for the business that might be owned someday in a personal manner. The overall goal will be to show that through the proper manipulation of various legal aspects, exposure to and protection from legal suit can be minimized. The following quote from Jack Kingston sets the stage for the discussion on legal woes of the Tinker & Tailor Home Security business, “Frivolous lawsuits are...
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...Business Entity Matrix Paper Exploring one’s entrepreneurship and starting a new business can be quite exciting. The idea of being your own boss and making all the management decisions is extremely appealing to many. However, there are many considerations and plans to make before actually starting the business. Aside from the obvious of choosing what it is one wants to do, a person must consider how to acquire the funds to start the business, what liabilities the company and owners may be exposed to and whether additional help will be needed to run the business. Our current venture is to start a business of selling pet treadmills. One of our initial concerns is the startup capital needed. While we do have a healthy inheritance to utilize for startup capital requirements, we are also contemplating bringing in two friends on the venture. We must also consider the future of our business such as adding employees, franchise opportunities and international market growth. We know our first decision needs to be which type of entity to use to start the business. This decision will have a big impact on all these factors. Many people do not consider the business entity type until the business is already “up and running”. However, the entity type has a direct relation to the ability to raise capital and the amount of taxes paid by both the company and its owners. As such, careful consideration should be given to the potential needs of the business and its owners in making...
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...Report based on case study “ A successful business development”. Contents: 1. Types of business entity 2.1. Explanation of each entity 2.2. Advantages and disadvantages of each type of entity 2.3. Objectives of each entity 2. Stakeholders 3.4. Definition of stakeholder 3.5. List of stakeholders of each entity 3.6. Interest of each stakeholders 3. Organizational structure 4.7. Comparison of two structures presented in the case study 4. Human Resource Management 5.8. The role of HR within the structures presented in case study 5.9. Different methods of HR functions has been delivered of each type of entity 5. Reference 1. Types of business entity In the attached case study we have examples of following business entity: * Section 1: Sole trader * Section 2: Partnership * Section 3: Company: Private Limited Company * Section 4: Public Limited Company Sole trader: Sole trader is an individual who is run his own business. It is a self-employed person who bears risks and losses and takes the profits and the benefits. Partnership: Partnership is type of entity which is organized and managed by at least two people and where all profits and debts are share between the partners. Private limited Company: Private limited is type of business entity which is run and managed by shareholders who has limited liability and shares are exchange privately. There are restrictions define...
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...Underpinnings of Business Law Anthony Bourdain BUS 670 Professor Pat Riley May 23, 2016 Business ownership is formed around the concept of what the business owner(s) have in mind with regard to personal benefits and limitations. As with any type of business venture or partnership, there are financial advantages and disadvantages of normal day-to-day operations that can lead to court actions as a result of specified liabilities involved. In the matrix provided below, comparisons and contrasts of personal liability exposure associated with sole proprietorship, general partnership, limited partnership (LP), corporations, and limited liability companies (LLC) in a lawsuit for breach of contract is shown using Tinker’s Home Security Service brand. This paper will identify the underpinnings of business law and how business owners can prevent and in most cases avoid the possibilities of litigation from coming to fruition. Tinker’s Home Security Service is set up as a sole proprietorship meaning that the business is owned and operated by a single business owner. Many owners looking to startup a business consider this approach because of its simplicity, independence and affordability. Authors Hopson and Hopson (2014) mentions how a sole proprietorship is least demanding to frame and upkeep. (Hopson & Hopson, 2014, p. 47). Less downtime and maintenance will only help improve productivity thus leading to positive financial gains. The downside to this business type is that along...
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...Marketing Plan . Table of Contents 1. Executive Summary 2.1. Business Name: Ground Zero | Restaurant Bar 2.2. Business Description 2.3. Business Size: Micro 2.4. Business Activity: Service 2.5. Objectives 2.6. Mission, Vision, Values 2.7.1. Mission 2.7.2. Vision 2.7.3. Values 2.7. Strategic Focus 2.8. Location 2.9. Legal Entity: Partnership 1.10.Ownership 1.11.Competitive Advantage 2. Situation Analysis 3.10. Market Research 3.11.4. Competition 3.11. Research Findings 3.12.5. Competitors 3.12.6.1. Pier One 3.12.6.2. Gerry’s Grill 3.12.6.3. Fat Johnny’s Grill 3.12.6.4. Competitor Matrix 3.12. Target Market 3.13. Target Demographic 3.14. Target Market Strategy 3.15. SWOT Analysis 3. Market Strategy 4.16. Image 4.17. Promotion Strategy 4.18. Price Strategy 4. 8P’s 5.19. Philosophy 5.20. Promotion 5.21. Products 5.22. Price 5.23. Placement 5.24. Personnel 5.25.6. Demographic Profile 5.25. Process Management 5.26. Physical Facilities 5. Demographic Profile 1. Executive Summary 1.1. Business Name Ground Zero | Restaurant Bar 1.2. Business Description Ground Zero’s main goal is to offer a high class experience to every individual especially for those who are cost-conscious. It’s a place where you...
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...Consolidation of Variable Interest Entities A Roadmap to Applying the Variable Interest Entities Consolidation Model March 2010 FASB material, copyright © by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, is reproduced with permission. This publication is provided as an information service by the Accounting Standards and Communications Group of Deloitte & Touche LLP. It does not address all possible fact patterns and the guidance is subject to change. Deloitte & Touche LLP is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte & Touche LLP shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. March 2010 Contents Acknowledgments Introduction Section 1 — Overview, Background, and Scope 1.01 1.02 Determining Which Consolidation Model to Apply Consideration of Substantive Terms...
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...Finance Course: Health Care Finance Readings MBAHC−4 California College for Health Sciences MBA Health Care Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−55313−1 Text: Advanced Financial Accounting, Sixth Edition Baker−Lembke−King Harvard Business School Accounting Cases Corporate Finance, Seventh Edition Ross−Westerfield−Jaffe Harvard Business Review General Management Articles Harvard Business School Finance Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−55313−1 Finance Contents Ross−Westerfield−Jaffe • Corporate Finance, Seventh Edition I. Overview 1 1 20 34 34 69 97 129 151 151 192 192 214 214 248 1. Introduction to Corporate Finance 2. Accounting Statements and Cash Flow II. Value and Capital Budgeting 4. Net Present Value 5. How to Value Bonds and Stocks 7. Net Present Value and...
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...Chapter 5 5-1. The corporation is the most common form of business ownership. Answer: False LG: 1/LL: 1 Page: 142 5-2. The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations. Answer: True LG: 1/LL: 1 Page: 142 5-4. Once a business is established, it's almost impossible to change from one form of business ownership to another. Answer: False LG: 1/LL: 1 Page: 142 5-5. A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish. Answer: False LG: 1/LL: 1 Page: 143 5-6. The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the state government. Answer: False LG: 1/LL: 1 Page: 143 5-8. The profits of a sole proprietorship are taxed as the personal income of the owner. Answer: True LG: 1/LL: 1 Page: 143 5-10. A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business. Answer: False LG: 1/LL: 1 Page: 143 5-12. The debts of a business operated as a sole proprietorship are considered to be the personal debts of the owner of the business. Answer: True LG: 1/LL: 1 Page: 143-144 5-13. A drawback of sole proprietorships...
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...validly appointed but the directors of the company are accustomed to act in accordance with the person’s instructions and wishes; person in a) OR b) is de facto director, within c) is a shadow director * Statutory duties, including the duty to act with reasonable care and diligence and the duty to act in the best interests of the company * Statutory requirement for all companies to have at least one director; PTY company must have at least one, with one ordinarily residing in Australia (s201A(1)); public companies must have at least 3, with at least 2 in Aus (s201A(2)) * Directors’ role: manage or supervise the management; for companies that rely on the replaceable rules as their internal governance rules, s198A provides that “the business of a company is to be managed by or under the direction of the directors’” * Company secretary: public companies must have at least one company secretary (s204A(2)) be 18yo and have at least one residing in Aus; PTY company may have one but is not required to appoint one (s204A(1)); secretary is appointed by directors; responsibilities include record-keeping and lodging certain documents with ASIC; same person may be both director and company secretary; for public companies does Corps Act require both officers, director and CS. ROLE OF COMPANY OFFICERS * Except in the case of a single director/shareholder PTY company, company law assumes a “division of labour” * Directors’ role: natural person over 18 (s201B(1)) and the person...
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...Finance Course: Corporate Finance MBA−10 California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−55204−6 Text: Harvard Business School Entrepreneurship Cases Corporate Finance, Seventh Edition Ross−Westerfield−Jaffe Harvard Business School Finance Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−55204−6 Finance Contents Ross−Westerfield−Jaffe • Corporate Finance, Seventh Edition I. Overview 1 1 20 34 34 35 70 98 130 152 152 193 219 219 241 241 275 1. Introduction to Corporate Finance 2. Accounting Statements and Cash Flow II. Value and Capital Budgeting Introduction 4. Net Present Value 5. How to Value Bonds and Stocks 7. Net Present Value and Capital Budgeting 8. Risk Analysis, Real Options, and Capital Budgeting III: Risk 10. Return and Risk: The Capital−Asset−Pricing...
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...Introduction and Course Philosophy: This course covers accounting theory and practice for business combinations, segment and interim reporting, foreign exchange and partnerships. Business combinations cover most forms of mergers and acquisitions, which are common among business entities. Segment reporting is how management disaggregates financial results into meaningful business performance. Foreign exchange covers the basics of currency transactions and translation including hedging, which are common in the global economy. Finally, in partnerships we cover more extensively the formation, operation and dissolution of general partnerships, the most prevalent form of business in the United States. In my career in financial services, I was personally involved in 3 large business combination involving aspects of mergers, segment reporting and foreign exchange that we will discuss in class. You will be exposed to the authoritative accounting literature covering each area and get hands on experience in solving typical problems faced by accounting practitioners. We will complete the entire syllabus. Required Text: Advanced Accounting---11th edition, Hoyle, Schaefer and Doupnik McGraw Hill/Irwin 2013. A separate loose leaf edition, with only the chapters we cover will be available exclusively at the Queens College bookstore. The ISBN for the looseleaf edition is 9780077772932. Acquiring the loose leaf edition gives you the convenience of being able to bring only the chapters...
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...will compare and discuss different forms of business and their advantages and disadvantages. Following are the different type of business formed to conduct work: 1. Sole proprietorship. 2. Partnership. 3. Limited liability partnership. 4. Limited liability company. 5. S corporation. 6. Franchise. 7. Corporate. 1. Sole proprietorship, The sole proprietorship is a type of business entity that is owned and run by one individual. All the decisions of the business are made by that individual and there is no legal distinction between that individual and the business. Following are the advantages and disadvantages of Sole proprietorship Advantages They have the ability to raise capital either publicly or privately. To limit the personal liability of the officers and managers. Limit risk to investors. Sole proprietorships have the least government rules and regulations affecting it. Owners have complete control over all the aspects of his or her business. The owner can take any managerial decisions that he/ she wants to take. Disadvantages Raising capital for a proprietorship is more difficult because an unrelated investor has less peace of mind concerning the use and security of his or her investment . The investment is more difficult to formalize other types of business entities have more documentation. The enterprise may be crippled or terminated if the owner becomes ill. The business is the same legal entity as the proprietor; it ceases to exist upon the...
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...THE BUSINESS ENVIRONMENT | Legal, Social, and Economic Environments of Business | | | | LaTia Hines | 10/9/2011 | | ABSTRACT In this paper, you will find information on the best choice of business entity for a new product that has excellent market potential. You will examine the pros and cons of each type of business structure. Business structures such as a Sole Proprietorship, Partnership, and Corporation, and ultimately why a corporation was the best business structure for this particular product. A woman has an excellent idea for a new appliance that she feels will benefit the needs of everyday consumers. However, she has a few decisions that stand in the way of launching the product. She is not that business savvy, she has no managerial skills, knows nothing about manufacturing and more importantly, she does not have any capital to start-up. She is sure her products will fit consumer’s needs well, mainly because there is no other product on the market like it. To establish her business the first thing she wanted to do was to declare the type of business entity she wished to have. Now given the elaborate list of things that she is lacking, no managerial skills, no business knowledge, no funding, and no way to make the product she knew that she could automatically eliminate sole proprietor as a choice. As a sole proprietor, she would assume all responsibility and liability for funding her product and start-up, something she is lacking and has...
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...2) Four categories of business enterprises are as follows: • Partnership A partnership is an agreement between two or more people to finance and operate a business for profit. Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement. A partnership agreement is a legal agreement between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including: Percentages of ownership and distribution of profits and losses Description of management powers and duties of each partner Term (length) of the partnership How the partnership can be terminated How a partner can buy his/her share of the partnership. A partnership agreement should be prepared by an attorney so as to include all important "what if" questions and avoid problems when the partnership ends. TYPES OF PARTNERSHIP There are two types of partnership; general and limited partnerships. THE GENERAL PARTNERSHIP A general partnership is a type of business partnership arrangement that involves the participation of two or more parties as business partners in a company organization. With this particular type of business arrangement, all partners share both the rewards and the potential liabilities associated with the operation of the company. Unlike other business types, a general partnership does not provide any type of limited liability for any of the partners, meaning that in the event of...
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...ORGANIZATIONAL FORMS Yvette Crespo 310.1.2 The following is an explanation of six types of business models. I will explain the advantages and disadvantages, liability, incomes taxes, longevity, control, profit retention. Location and or convenience and burdens. In conclusion, the reader should have a clear understanding and overview of the six types of business forms. SOLE PROPRIETORSHIP The overall benefits of a sole proprietorship are the flexibility and inexpensive way you can organize and control the company. The owner can create their own policy and procedures as long as they are with the parameters of the law. They receive all income generated by their business and can reinvest as they see fit. Disadvantages There are a few disadvantages sole owners can experience such as raising funds, use their own personal savings and acquiring debt through business loans. Obtaining and retaining high performing talent can be challenging due to sustainability of employment and medical benefits. Income Taxes When filing income taxes as a sole proprietor you must use a Schedule C form along with Schedule SE and Form 1040. Taxes are paid on all profits of the business. Any money left in the account at the end of the year has to be reported and taxes must be paid the balance. Recording keeping is crucial as a sole proprietor. You can deduct expenses such as operating costs, travel, equipment and start-up costs. (Nolo, 2011). Self-employment taxes must be paid into...
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