...Legal Forms of Business Paper University of Phoenix LAW/531 Aaron Gershonowitz November 7, 2011 Legal Forms of Business There are many different forms of business in today’s society. They run from sole proprietorship to corporate form. When someone wants to start a business, he/she has to decide what form of business he/she wants to be a part of. Of all the forms of business out there, this paper will be discussing seven of them, along with scenarios that each of these seven forms would be preferred. The forms of business being discussed in this paper will be: sole proprietorship, general partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form. Sole Proprietorship A sole proprietorship is a business that is owned by one person. Someone new to the business world would want to start out having this type of business if he/she wants to keep the business small. There are several major advantages to operating a business as a sole proprietorship, and they include the following: • Forming a sole proprietorship is easy and does not cost a lot. • No federal or state government approval is required. • The owner has the right to make all management decisions concerning the business, including those involving hiring and firing employees. • The sole proprietor owns all of the business and has the right to receive all of the business’s profits. • A sole proprietorship can...
Words: 2416 - Pages: 10
...Business Entities, Laws and Regulation Paper Earnestine Pearson BUS/415 April 23, 2012 Tony Cardillo A entrepreneur according to Cheeseman, 2010, “is a person who forms and operates a business” (p. 250). In opening and starting a business, an individual will have to decide what type of business to form, and if he, she, or they is qualified to do. Individuals must also be able to determine the different forms of business organizations. These forms include: sole proprietorship, general partnership, limited partnership, limited liability partnership, and corporation. According to Cheeseman, 2010, “the selection of business forms has many factors to depend on. Factors including the ease of cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax consideration, and the like” (p,250). In this paper, I will also discuss three scenarios: Business Professional Practices, the Extermination Business, and the Construction scenario. I will discuss the business entity of each scenario, the taxation of each scenario, taking charge, liability issues that each business must consider, identify the laws and regulations, and risk associated with each scenario. Professional Practice This scenario is about two friends Akiva and Tara who wants to open a birth clinic together. They have both completed all of their educational and experimental requirements of becoming obstetricians. Before they...
Words: 1058 - Pages: 5
...Business Entities, Laws, and Regulations Paper Name BUS/415 Instructor Name July 5, 2010 Business Entities, Laws, and Regulations Paper There are two hypothetical businesses or scenarios which are selected for the following paper. This paper will comprise of contemplations regarding various issues which these businesses will have to face. These may include issues related to legal, liability, control, taxation, and risk and regulatory. Furthermore a hypothetical manager scenario will be there according to which a manager will hire from amongst several candidates with different qualifications and experiences. An advertisement for a jackhammer operator will be placed in accordance to which the applicant will be selected from numerous applicants and also the regulatory and legal issues will be considered while doing this selection. Professional Practice Scenario As per this scenario, a big loan or credit is required by Akiva and Tara who are interested in opening a birthing clinic. For this purpose they need large financing which is possible through the loan. A limited partnership will be created when two medical professionals Akiva and Tara will enter a partnership. This will be an LLP or Limited Liability Partnership. According to Cheeseman (2010, p.274) there is advantage for the partners to enter an LLP as the liability on each partner is up to the capital contribution or investments in the partnership. When articles of partnership is filed with the secretary of...
Words: 1771 - Pages: 8
...Legal Forms of Business When considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends...
Words: 2170 - Pages: 9
...Pricing Analysis Paper 1 Week 8 Pricing Analysis Paper Brian Newman Business 626 Dr. Mohammed Nadeem June 4th, 2012 Pricing Analysis Paper 2 Table of Contents Executive Summary………………………………………………………………………………………………………………..3 First Data Set……………………………………………………………………………………………………….…………………4 Second Data Set………………………………………………………………………………………………….………………….6 Future Scenarios…………………………………………………………………………………………………………………….7 Summary………………………………………………………………………………………………………………………………..8 Referances…………………………………………………………………………………………………………………………………………..9 Pricing Analysis Paper 3 Executive Summary BCN Corporation has launched the first ever to market pre-packaged performance management recognition and reinforcement system for line level organizational leaders. This innovative approach to prioritizing KPI’s and recognizing successes as well as offering a dashboard to senior leaders is expected to garner significant demand in the early stages after launch. BCN marketing and project teams have posed the following scenarios in effort of preparation for fluctuations in volume, costs, and demand. Pricing Analysis Paper 4 First Data Set When determining the maximum profit price for the first posed scenario (14,000 and 23,000 quarters 1 and 2 reduction in price 2nd quarter as loss leader to garner awareness) first we must look at the optimal profit producing quantity to produce. At peak revenue of $348,000 and peak profit of $228,000 we find ourselves at 12,000 units. At this optimal...
Words: 751 - Pages: 4
...awarding a sum of money, known as damages, for infringe- ment of a protected interest. Alternatively, by the issuing of an injunction, which is a court order, to the defendant to refrain from doing something" (p.1). This paper will give two scenarios of two different torts. The first tort will be Breach of Fiduciary Duty. The paper will also show how Breach of Fiduciary Duty can be avoided and how the situation could have been avoided. The second tort will be Injurious Falsehood. This paper will also show how Injurious Falsehood can be avoided and how the situation could have been avoided. Breach of Fiduciary Duty Corporation A files for bankruptcy. The directors of the corporation recommend what seems to be a good restructuring plan. The plan relies on maintaining the current business contracts for the success of the corporation. The reconstruction was formulated under false pretenses. After authorization of the plan, the directors of the corporation proceed to reroute the business contracts that would have permitted Corporation A to effectively reorganize to Corporation B. Corporation B is completely owned by the directors of Corporation A. Because of the directors take over of Corporation A's business contracts, the reformation of the Corporation A falls short. This is a blatant Breach of Fiduciary Duty. According to "U.S.legal" (2001-2012), fiduciary duty is defined as "an obligation to act in the best interest of another party. For instance, a corporation's...
Words: 679 - Pages: 3
...Business Entities, Laws, and Regulations Paper LAW/421 Business Entities, Laws, and Regulations Paper According to Melvin (2011) all business ventures operates as a legalized form of business entity. When owners and managers of a business have knowledge of the structure, advantages and risk that each form of business entity involved then business for this particular group, will more effective at concentrating on business opportunities and taking advantage of them while limiting potential liability. These paper will giving examples of three different scenarios where owner have specific plans for each business and of these examples the fallowing step will be touch: a) the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration; (b) identify laws and regulations each particular business must consider in starting the business; and (c) identify risks against which each particular business must protect itself. Restaurant/Bar Business Scenario Restaurant/bar business: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam, a wealthy investor who does not have time to participate actively in the business, but wants to provide capital to start the business in return for a percentage ownership. According to Melvin (2011) Limited Liability Partnership...
Words: 978 - Pages: 4
...American Chemical Corporation Context The business environment leading up to 1979 was a very challenging one as the U.S. economy was still on the heels of a period of high inflation, low growth and high unemployment that started in the 1970s. The deep recession hit almost all sections of the economy. Real gross national product (GNP) fell by 2.5 percent while the unemployment rate rose above 10 percent and almost one-third of America's industrial plants lay idle. Company The Dixon Corporation is a specialty chemicals company that supplies primarily to the paper and pulp industry. The company’s products are mainly used by paper companies as a bleaching agent for pulp. Dixon’s principal plant was located in Calhoun, Georgia, and mostly supplied paper and pulp companies in the southeastern United States. The company achieved strong growth with a compounded annual growth sales of 17% for the past 5 years (1974-1979) and improved net margins to 9.5% by 1979 as the sodium chlorate market remained resilient despite the difficult economic situation. Customers The primary customers of the sodium chlorate producers are the paper and pulp industry, which accounts for approximately 85% of total production. As such, growth in the markets will essentially mirror growth in the pulp & paper industry. The 1970s was a turbulent period for the paper and pulp industry, marked by greatly intensified competition, periods of overcapacity (especially in 1976), a deep recession in...
Words: 2157 - Pages: 9
...Week Two: Individual Paper: Legal Forms Of Business with Supporting Scenarios Chanel Moore-Bass Law/531 Business Law March 19, 2012 Carmina Perez-Fowler, UOPX Faculty Online Week Two: Individual Paper: Legal Forms Of Business with Supporting Scenarios There are seven major forms of business: sole proprietorship (sole trader), partnership, limited liability partnership (LLP), and limited liability company (LLC), subsidiary or subchapter corporation (S), franchise, and corporate/company (C- traditional). The various forms of businesses are established and recognized by state laws. To determine the type of business form to use, it is important to know the differences, advantages, and disadvantages. Sole trader/proprietor is the clearest and simplest form of business to establish. It is just one owner, debt/tax liabilities fall on the owner, the income (profits/losses) reports on personal tax return. Examples of sole proprietorship are franchise, self employment, and independent contractor. Advantages are total autonomy of the business, no legal procedure to setup, no set hours/wages, and no shareholders. Disadvantages are if owner dies the business dissolves, full responsibility of tax/debt liabilities, difficulty obtaining long-term financing, and personal liability if sued. General partnership is more than one owner, involving verbal or oral agreement but not filing paperwork to create a specific entity, such as a corporation or LLC, either partner can bind the business...
Words: 1219 - Pages: 5
...Business Entities Paper Arbra Jones Business Law BUS/415 Professor Dina C. Gledhill February 20, 2012 Business Entities This paper will evaluate three scenarios, restaurant and bar with wealthy third party investor, an extermination company with a wealthy owner and investor, and a construction company which is hiring for particular position. The business entity that represents the best choice for each business will be identified as well as the laws, regulations, taxation, and control each business must consider. The liability issues each business must protected from will also be discussed. The evaluation of the construction company will identify and discuss employment laws and regulations the company must abide by. Restaurant and Bar Scenario Based on information provided in the scenario, Lou and Jose want to open a sports bar and restaurant. Miriam, a wealthy investor, has agreed to invest in the venture because Lou and Jose do not have enough startup capital. In return for her investment Miriam will receive a percentage of the company’s profit as an owner. Business Entity, Control, Taxation, and Liability A partnership would be the best business entity for the sports bar because there are three owners that will participate in the business and receive a percentage of the business profits. Miriam will provide the investment capital and Lou and Jose will run the day-to-day operations. A partnership allows all parties to have control of the business and decisions...
Words: 1583 - Pages: 7
...There are a lot of legal forms for businesses. In this paper, I will talk about these forms; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will try to develop scenarios in which each of these forms of business would be the preferred form. For each scenario, I will justify why the corresponding business form is preferred. Sole proprietorship is the first form of businesses and it is the simplest form of business organization. The Sole proprietorship and the owner of the businesses are representing the organization. Forming the sole proprietorship is very easy and does not cost a lot and this is why it is the most common business in United State. The businesses owner is the manager and he takes all the decisions and the responsibilities including the hiring, and firing the employees. The sole business owner owns all of the business and has the right to obtain all of the business’s profits. For the past points, the sole business would best a good form. Lastly, the only disadvantage is that the sole business owner is responsible for the entire business obligation. There are many examples for the Sole proprietorship such as Independent Contractor, E-Business, Brick and Mortar Business… Etc. Tina is young lady who she part time student at community college. She decided to earn some money by creating a small business for dogs’ setter. She provides services in her new business (feed the dogs...
Words: 1097 - Pages: 5
...review the following resources: Review APA Style Sample Paper here. Complete the APA style tutorial here. Review the Frequently Asked APA Questions here. Read Course Welcome Letter here. Click here to read the scenario. Based on the business scenario you have just reviewed, you will prepare an APA formatted paper that reflects your knowledge of the legal forms of business. Specifically, you will make a management decision regarding the legal form of business you believe would be appropriate to enable the firm to successfully address the business issues it is currently facing. Keep in mind that from a legal perspective, businesses are organized as one of the following: Sole Proprietorship Partnership Corporation Click here if you would like to see a What-If Analysis for this assignment. At a minimum, your paper should include: A brief interpretation of the scenario issues. The advantages and disadvantages of each business type (sole proprietorship, partnership, and corporation) when compared to the issues and each other. Your management decision regarding which business type you believe would be most likely to succeed and why. Citations and aligned references from academic sources to support your decision. Submitting your assignment in APA format means, at a minimum, you will need the following: TITLE PAGE. Remember the running head: AND TITLE IN ALL CAPITALS. ABSTRACT. A summary of your paper, not an...
Words: 492 - Pages: 2
...Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be sold or transferred if the owner choose, no other approval is necessary. Scenario: A small neighborhood businesses, sometimes called, neighborhood store, are an example of sole proprietorship. Creating a sole proprietorship is easy and low cost with no government approval is required at the federal and state level. A license to do business within the city is required at the state level. This form of business is excellent for a person with limited amount of money to start a small business, Sole proprietorship is responsible for business’s contract and torts committed, The sole proprietorship has...
Words: 986 - Pages: 4
... | | |LAW/421 Version 1 | | |Contemporary Business Law | Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course reviews the U.S. legal system, common law and its development, organizational structures, and the regulatory environment pertinent to business. Students will learn to critically examine torts, crimes, and business ethics. They will also examine contracts; business associations including agencies, partnerships, and corporations; wills, estates, trusts, and other legal entities; securities regulations; and investor protections. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials ...
Words: 1244 - Pages: 5
...definitely aide in making a good, sound business decision of which type of business to invest in. This paper will discuss the role of limited liability corporations and partnerships; and also provide a scenario of what circumstance would cause one to choose a particular type of business to invest in, or own, over of the other. Roles of Limited Liability Corporations Limited Liability Corporations also known as LLCs are numerous and they provide various products and services today. However, the roles of Limited Liability Corporations were established to grant protection to business members from losing their personal assets in litigation. According to Gitman, L. J. (2009), “LLCs are permitted in most states and may enjoy taxation as a partnership and can own 80 percent ownership of other corporations and partnerships” (pg. 8). “If the LLC is properly formed and operated under state law, its members are not personally liable for the entity’s debts and obligations. An LLC that has at least two members is classified as a partnership for federal tax purposes unless the members elect to be taxed as a corporation” (www.lexisnexis.com/lawschool/study/understanding/pdf/PshipTaxCh1.pdf pg. 12). Shares of LLC’s can be owned by non-residents of the U.S. Corporate joint ventures or projects developed through a subsidiary works best for businesses that are Limited Liability Corporations. Roles of Partnerships The roles of partnerships are to accomplish partner’s satisfaction in achieving...
Words: 905 - Pages: 4
