Different types of legal entities and liability
Not what you're looking for?
Consider the following scenario:
Joan has always been a "hands-on" manager, a businessperson who becomes involved in all aspects of an operation. She is starting her own company, which will manufacture parts for the private aviation industry. There is some potential for product liability in this line of business. Joan consults an attorney to decide upon the kind of business entity to form, so she has freedom in exercising management control and she is protected to the greatest extent available from product liability lawsuits.
Assuming Joan will be the sole owner of the business, what would be the advantage of operating her new firm as a sole proprietorship? What would be the disadvantages, if any?
To protect Joan from personal liability, what business form or forms may her attorney recommend? Why?
Besides recommending a certain business structure, what other steps might the attorney suggest to Joan to help protect her from losses due to product liability?
Purchase this Solution
Solution Summary
Assuming Joan will be the sole owner of the business, what would be the advantage of operating her new firm as a sole proprietorship? What would be the disadvantages, if any?
To protect Joan from personal liability, what business form or forms may her attorney recommend? Why?
Besides recommending a certain business structure, what other steps might the attorney suggest to Joan to help protect her from losses due to product liability?
Solution Preview
If Joan decides to operate the business as a sole owner, the advantage is that setting up the business will be simple as far as the state is concerned. Joan can probably set this up by herself with the state and many times she does not really have to do anything special.
The disadvantage ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Motivation
This tests some key elements of major motivation theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.