...Normandale sends photographs and samples of the Mathis line to CLA and instructs them to make an identical line at a lower price. Mathis labels are easily discernable in the photographs and the samples have the Mathis label attached. CLA copies the Mathis line for Normandale. CLA sells the clothing to Normandale at a low price allowing Normandale to sell the products for a total gross profit of nearly $3 million, an increase of nearly 50% over its sale of Mathis products. Mathis discovers that Normandale is selling counterfeit products, and sends several cease-and-desist letters to them—to no avail. Mathis then sues Normandale alleging Normandale has engaged in illegal conduct. Normandale counters that it did nothing wrong. Research business law in regard to protection of intellectual property using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. In the paper, respond to the following questions: •Was it ethical for Normandale to sell the alleged knock-off products at a lower price? Explain. •What federal or state laws protect owners of intellectual property? How do they apply here? Explain. •What damages, if any, has Mathis suffered because of Normandale’s conduct? Explain. •What are the differing views on the social responsibility of corporations like Normandale? •What ethical code could Normandale implement to prevent similar incidents in the future? •Do the...
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...Legal Forms of Business Legal Forms of Business Entrepreneurs face a difficult decision in choosing a legal form of business. The preferred form of entity is dependent on many relative factors, such as the type of organization and business environment. Different forms of legal businesses have different tax, investment, and financial implications. The best-suited business calls for a thorough analysis of pertinent facts before making a decision – requiring some careful planning and strategy. This study provides an analysis of seven forms of legal business. Sole Proprietorship Sole proprietorships are fairly simple and inexpensive to create and operate. Legally, a sole proprietorship is inseparable from its owner, and therefore the owner is personally liable for business debts (Cheeseman, 2010). The tax implications for a sole proprietorship are simple. The business owner reports profits and losses on their personal tax returns. Sole Proprietorship is the preferred form of business in establishing or operating a small business where personal liability is not a big concern. Sole proprietors own businesses in many industries. Some of the more common sole proprietorships are landscaping services, housecleaning services, independent writing services, and tutoring services. * Landscapers tend to work alone or hire a small team of employees, providing landscaping services to homeowners and businesses. Sole proprietor may take on independent contracts and projects...
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...Legal Forms of Business LAW 531 Legal Forms of Business The first step in a new business is to decide how the business will be structured and the first executive decision will be to choose what type of business organization is the best. There are a number of legal forms that a business can take but to make that choice the following should be taken into account. For example: the size and scope of business, the level of structure, the level of control, tax matters, profit or loss of the business, re-investment issues, etc. There are several legal forms of business: sole proprietorship, partnership, limited liability partnership, Limited Liability Company, corporation, S corporation. Sole proprietorship In a first scenario a handyman who wants to get into business which will have little paper work and set up cost. The entrepreneur doesn’t have a partner and will be running the business alone. For this scenario the best business form will be sole partnership. This is a business with one owner which means the owner and business are inseparable. In other words the owner is the business and the business is the owner. The majority of small businesses start out as sole proprietorships because it has some advantages. • sole proprietorship is easy to form and operate • least expensive form of ownership to organize • owners are in complete control, and may make decisions by themselves • the owner receives all income generated by the business • it is easy dissolve the business...
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...LEGAL FORMS OF BUSINESS Legal Forms of Business Law/531 April 12, 2012 Robert Payne Legal Forms of Business Choosing the proper business organization structure is one of the most important decisions that a business owner must make. The type of organization will determine how the business handles tax matters and whether there is protection against personal liability. A business owner should consider several factors in choosing a business structure, including the number of individuals in the business, type of business, profitability of the business and insurance. In this paper I will explain the legal forms of business, sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will develop a scenario explaining each form of business and why it was chosen. Sole Proprietorship “A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business” (Cheeseman, 2010, Business Ethics and International Issues, pg. 530). For example, an individual who makes and sells jewelry for a profit would benefit from being a sole proprietorship. It is the easiest business to form, does not cost a lot, and must be registered with the Secretary of State. The sole proprietor would own all the business, have the right to all the profits, and will not pay taxes on the business because sole proprietorships are not separate legal entities...
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...Legal Forms of Business Sole proprietorship The sole proprietorship is the oldest, most common, and simplest form of the business. Also known as a sole trader, is a type of business form that is owned and manage by one person and in which there is no legal difference between the owner and the business. The owner receives all profits and has full responsibility for all losses and debts. The proprietor owns every asset of the business and all the business liabilities are the proprietor’s. A sole proprietor may use a business name other than his or her legal name. The Advantages Mainly the reduced cost of a business, easier and cheaper to start and discontinue without high cost and legal expenses; and easier management, and the owner have exclusive control, a Sole proprietorship is extremely challenge that inspire the individual for more success in his life. A sole proprietorship is a good business organization for an individual starting a business that will remain small, does not have great exposure to liability, and does not justify the expenses of incorporating and ongoing corporate formalities. (Iowa Secretary of State, 2011) Partnership A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. (IRS.gov, Sept 2010). In another words, a partnership is an arrangement where two or more people...
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...Legal Forms of Business Ismael Aguilar Business Law / LAW-531 September 10, 2012 Erica Woodford Legal Forms of Business When an entrepreneur is in desire to start a new business, the available options for the legal forms of business are somehow overwhelming. Each form of business provides different advantages and risks, a good understanding of the main aspects of these form of business is a step that the entrepreneur must complete to avoid future drawbacks. During the following paper, we will discuss different form of business, enlist some of their main characteristics, and provide examples of possible scenarios for new business where these different legal forms of business can be used. Sole Proprietorship The sole proprietorship is the most simplest and common form of business in the United States, where the sole proprietor, is the business (Cheeseman, 2010, p. 530). Some of the advantageous characteristics of this legal form of business are the low capital requirements to start the business, the easy to transfer or sell the business, the tax is reported in the owners income tax, and that the owner receives all the profits. In the risks side, the entire capital contributions can be loos if business fail, and the fact that the sole proprietor has unlimited liability, are two characteristics worth listing. Sole proprietorships are good legal form of business for small entrepreneurial projects that can be funded with the owner’s own capital and personal loans, and where...
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...Legal forms of business Legal forms of business University of Phoenix Law/531 Week 2 Donna McKenzie Stanley P. Santire March 17, 2012 Literature reporters stated that business preferences are based on availability in states of residences based on the preferred structure (Fordham Urban Law Journal, 2005). Prior to January 1, 1998, availability for individual business ownership was limited to SP (Sole Proprietorship) or corporations. The amendment of the limited liability company act now makes it permissible for a one person LLC (Limited Liability Company). (AAES Project, 1998). After reviewing the options for a business structure, I made the decision to be a sole proprietor. A $10,000 capital investment was placed in the business and the business was started. A large profit was made in the first year and the gain was reinvested in the business. The sale of nursing uniforms continued to grow and started to attract investors but these were turned down because my sole ownership does not require the rental of a building. Marketing is done by tweets, fax or other technological methods by the customers. This, in turn, attracts new business, both from organizations and the public. A preferred form of business for proprietorship is for small businesses similar to mine. The main reason for the choice of sole proprietorship is the size of the business. The advantages gained for this type of business include ease in starting the business, low legal fees, minimal paperwork and...
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...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...
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...Business Law Sole proprietorship, is referred to as owning your own business entity and more or similar, sole proprietor and business owner are same. There is no legal distinction between the two; the business legal name is the same as the owners. However the business owner may obtain and conduct business under a fictitious name by filing a DBA also known as ‘doing business as’. The merits associated with sole proprietorship are: • Liability: The sole proprietorship while offering own complete autonomy, it also burdens the responsible person with unlimited accountability. The lack of distinction between the business and the owner leaves a little room for financial and or legal protection. In short, whole responsibilities for all debts and legal commitments are entirely directed to the business owner. In addition, as such creditors may seek recourse against personal assets. • Income taxes: The sole proprietor runs his own business being taxed as a whole element and form 1040 along and accompanying schedule C (profit or loss) from a particular business or owned profession.. Moreover, whatever profits the organization gains, are supposed to be personal income for the proprietor with no other division made on that and neither there is any federal income tax accountability for the owner. According to Gordon (1994-96), this is called as “pass-through taxation”. (p. 270). • Longevity: The sole proprietorship may only continue as long as the owner is alive unless specific instructions...
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...The current business environment brings a lot of challenges and opportunities for new businesses. An entrepreneur that starts a business must decide the legal form under which the new company will operate. The major forms of business organizations are: sole proprietorship, partnership, general partnership, limited partnership, limited liability partnerships, limited liability company, and corporation or under other available legal business forms (Cheeseman, 2010). The choice could become a critical factor of the success of the enterprise, since it will affect the cost structure, the capital requirements, the interaction with the government, legal risk, tax considerations and the overhead amount that will be required to operate the business properly. Sole Proprietorship This legal entity is the simplest business form. The sole proprietorship is not a legal entity. It refers to an individual that has full ownership of the profits and debts of the business. When a small entrepreneur decides to name his business in a particular way (e.g. Carlos' garage) is only a commercial name but is not a separate legal entity. Because its simplicity and its low cost it is a popular legal form, the only requirements are to register the name of the owner and obtain local licenses. A key disadvantage is that the owner is personally liable for all the business debt. This means that in the event of a legal dispute, the owner's assets will be in risk since any potential legal dispute can be addressed...
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...Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Develop scenarios in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred. In business world the first decision that is made is usually the most difficult. When making business investment decisions, the owner must decide what types of business organization is the best for the company or the nature of business. There are seven forms of business as well as scenarios in which each of these forms of business would be the preferred form will be discussed in this paper. Why the corresponding business form is preferred is also justified here. A person who wants to start a business must decide whether the business should operate as one of the major forms of business organization—sole proprietorship, general partnership, limited partnership, limited liability partnerships, limited liability company. An entrepreneur is a person who forms and operates a business. An entrepreneur may start a business by him- or herself or cofound a business with others. Most businesses started by entrepreneurs are small, although some grow into substantial organization. Every day, entrepreneurs in this country and elsewhere around the world create new businesses that hire employees, provide new products and services, and...
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...Legal Forms of Business Mike Robertson LAW531 May 7, 2012 Julie Benes Legal Forms of Business The well-informed businessperson understands choosing the correct business form is important. The type of business form determines what type of business organized, how money flows in and out of the business, how the business and owners are taxed, and the levels of risk to owners. There are several types of business forms. These types are sole proprietorship, partnership, Limited Liability Partnership (LLP), Limited Liability Company (LLC), S Corporation, franchise, and corporation. The businessperson needs to have an understanding of which business form is justified for their business startup. The beginning businessperson looks at the sole proprietorship a majority of times because of its simplicity (Anthony, 2011). A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business. There is no separate legal entity. Sole proprietorships are the most common form of business organization in the United States (Cheeseman, 2010). One example of a business that becomes a sole proprietorship is an independent contractor. The future business owner completes work for a business, but they are not an employee of these companies, they are considered self-employed and therefore a sole proprietor. Most person call this “moonlighting.” For example, if an electrical contractor with a full-time job also does home electrical...
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...LIT 1 Task 1 Part A: Business owners face a lot of challenges. In order to conduct their operations effectively businesses must be organized. The complex world of business is filled with the pressures of running a business, profit margins, decision-making, liability, Income tax, longevity, government regulations, control, expansion and future of the business and countless other things. In the United States businesses can be organized into one of three basic legal forms. * Sole proprietorship's * Partnerships * Corporations These are further sub divided into different forms. Each form have certain characteristics that set them apart and they also have some advantages and disadvantages. Let’s closely look at all three forms and analyze why one legal form would be selected over the other for a small business. 1. Sole Proprietorship: These are the most simplest and common way of doing business in the United States. A sole proprietorship is an unincorporated business owned by one person. A sole proprietor may run the business himself/herself or may hire others to run it for them but the ultimate decision is that of the sole proprietor. In such type of business form there is no difference between the owner and the business. Some important Characteristics of sole proprietorship's are as follows: * Liability: Sole proprietors suffer from unlimited liability. Since there is no difference between the owner and the business, the owner is liable for all debts and...
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...Legal Form of Business Paper Many different forms of business exist. Some of them are more common than others. Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form are the seven forms of business that we are going to discuss in this paper. We are going to develop scenarios in which each of these forms of business would be the preferred form and justify why the corresponding business form would be most preferable. A sole proprietorship is the simplest form of business (Cheeseman, p.530). It involves a single person wishing to start a business. . A partnership involves two or more people to carry-on a business as co-owners for profit (Cheeseman, p.533). An example of this could be that two people decided they would like to open a car washing business together. The best business model for the two of them would be to decide on a partnership. This business form would give them equal rights and equal responsibilities within the business. As long as each of them understands that they are partners and need to share the expenses and responsibilities that come with the business then a partnership would be the best model for their business. A limited liability company (LLC) is a form of business where owners have li A limited liability partnership (LLP) is a form of business that provides each of its owners with a limited personal responsibility (nolo.com, 2011). This...
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...When deciding to go into business for oneself, it takes a great deal of time, thought, and risk. Becoming an entrepreneur is not a simple task. One of the most important decisions an entrepreneur must make is deciding what type of business he or she wants to open. Throughout this paper, I will discuss seven business types; sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation, and will give a scenario for each. In addition, I will justify why the business form is preferred for the scenario given. Sole Proprietorship: Sole Proprietorship is the simplest form of business (Cheeseman, 2010, p. 530). In a sole proprietorship, the owner and the business are one. “Sole proprietorships are the most common form of business organization in the United States” (Cheeseman, 2010, 530). These are the mom and pop shops which are slowly and surely becoming extinct. Scenario and Justification: Carlos’ Quick Stop is the neighborhood convenience store that has the best coffee and hamburgers in town. Carlos’ is the sole proprietor of the quick stop. This means that Carlos is legally responsible for anything and everything that goes wrong in his business. Sole proprietorship was the best selection for Carlos because it was easy for him to open his business (just a few permits), it did not cost him a great deal of money, the store can be sold easily if he ever decides to do so, and he gets to be his own...
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