from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the business dies also. • Liability: In a sole proprietorship the owner is personally responsible for all of the liability, including all debts. and obligations. The Sole proprietors personal assets are unprotected if the company “goes under” and there are unpaid debts.
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ultimate outcome. The current relationship between the three owners and state of the business; a partnership, provides benefits such as low operation costs, but on the contrary, involves unlimited personal liability. Conversely, the consideration of evolving into a company can also present benefits like limited liability, but also drawbacks including double taxation. By maintaining their ongoing partnership, the three owners will continue to manage and the business will still function at a suitable
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Can a Limited Partnership be dissolved and converted into an LLC without the approval of all general managers? Rule: A limited partnership can convert to a LLC when all the owners adopt a plan of conversion to which all partners consent. A limited partnership dissolution is only allowed when all general partners and limited partners vote for dissolution, if the last general or limited partner dissociates and is not replaced within 90 days or if a court dissolves the limited partnership because
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Chapter 12 and 13 1. Type of damages: compensatory, punitive etc. Compensatory damages are used to compensate or reimburse a plaintiff for actual losses. The goal is to put him in the same position that he would have been if the tort had not occurred. The compensatory damages are generally broken down into special damages and general damages. Special damages compensate the plaintiff for quantifiable monetary losses (medical expenses, lost wages).General damages compensate individuals (not companies)
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Business law assignment Business Law Assignment Common law and stare decisis Common law is all that law that is made by judges. It is initiated by citizens when they file cases in courts. Stare decisis is a term used in the common law to mean that decisions made in court cases should be based on previous decisions. It simply means that the decision should stand. It therefore means that in business, this is a principle that can assure a business person of the ruling of a case that is similar to
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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
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have been explored by me. This exploration has made it possible for me to ultimately choose the right kind of legal structure befitting the bookstore business. I have explored the different forms like sole proprietorship and partnership, and not the forms like a limited liability (LLC) and a corporation. I have not thought it right to go deep into the structural details of such legal forms of business because I have never thought of investing that much in my business. In the course of my research I
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persons who contribute money or money’s worth into a common stock and who employ it for some common purpose. The legal system mainly provides for these types of associations, namely limited and unlimited companies. A company is said to be a limited company if, and when, the liability of the shareholders and investors is limited by the provisions of its own constitution. It may either be one that
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Commission, Federal Trade Commission, Occupational Safety and Health Administration, Securities and Exchange Commission. • Demonstrate a basic understanding of the following areas of tort law: negligence, intentional torts, and strict liability. • Demonstrate an understanding of the law of real property and personal property both tangible and intangible property, e.g.
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restrictions on the owner’s personal liability in a sole proprietorship. A) True B) False 11) The death of a majority stockholder of a corporation results in the dissolution of the corporation. A) True B) False 12) Liability law has had an impact on business by requiring them to place warning labels on products. A) True B) False 13) One of the disadvantages of the corporate form of ownership is the limited liability of its owners. A) True
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