Ashford University Legal Underpinnings of Business Law Analysis

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Business Finance

ashford university

Description

Tinker’s Home Security Service (sole proprietorship)

Tinker & Tailor’s Home Security Service (general partnership)
Tinker & Tailor’s Home Security Service (LP)
Tinker & Tailor’s Home Security Service, Inc. (corporation)
Tinker & Tailor’s Home Security Service, LLC (LLC)

  • The businesses are being sued for breach of contract. Create a matrix that lists each business, and compare and contrast your personal liability exposure as an owner as a result of the lawsuit.
  • For each business entity, analyze how you might limit your liability exposure as an owner.
  • Describe a business that you may own some day or that you currently own. (Even if you never plan to own a business, pretend as if you will do so for the purposes of this assignment.) Examine the best business organizational form for the business that you have described, including in your examination personal liability exposure, management, taxation, and ease of formation.

Submit a four- to five-page paper (not including title and reference pages). Your paper must be formatted according to APA style as outlined in the approved APA style guide and you must cite at least three scholarly sources in addition to the textbook.

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Explanation & Answer

Attached.

Running head: BUSINESS LAW

1

Legal Underpinnings of Business Law
Name:
Institutional Affiliation:

BUSINESS LAW

2

Introduction
Legal suits have a variety of impacts on the different forms of business entities. The
following paper analyzes the impacts of a lawsuit against Tinker’s Home Security Service as a
sole proprietorship, general partnership, limited partnership, corporation and LLC.
Matrix Table
Type of Business
Sole Proprietorship

Personal Liability due to the Lawsuit
-

Personal assets are at stake during a lawsuit of a sole
proprietorship (Kraakman, 2017).

-

Loss of the investment is a possibility in the process
of a lawsuit.

General Partnership

-

The resulting losses are shared among the members
thus partly shielding the members.

-

Compared to a sole proprietorship personal assets are
also at risk.

Limited Partnership

-

In this form, the general partner absorbs all the
liabilities (Coffee, 2015). Therefore, the other
members’ personal assets are safe.

Corporation

-

In a corporation, the lawsuit will only impact the
corporation and its assets.

BUSINESS LAW

3
-

Compared to a general partnership, this form of
business protects the shareholders.

Limited Liability Company

-

(LLC)

In an LLC the members are protected by the state
under the articles of organization (Boom, 2016).

-

Additionally, LLC’s members just like those in
corporations do not have a personal stake in the
impending losses.

Sole Pr...


Anonymous
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