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Two Business Law Problems

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#1 Provide 4 sentences: what advantages
and disadvantages are associated with each major business forms or how does a franchising relationship arise?

#2 Provide 4 sentences: In light of all the corporate scandals (Enron, Marth, etc), what are the duties (tort word) of corporate directors and officers? How about what do you do as a director to avoid liability for an hones mistake of judgment or poor business decision?

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Solution Summary

The advantages and disadvantages associated with each major business forms or how a franchising relationship arises is determined. Corporate scandals are analyzed.

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Hi there,

Advantages of sole proprietorship:

A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain.

Disadvantage:
The business has no existence apart from you, the owner. Its liabilities are your personal liabilities and you undertake the risks of the business for all assets owned, whether used in the business or personally owned.

Partnerships:
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.

A partnership must file an annual information return to report the income, deductions, gains, losses etc., form its operations, but it ...

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