week 2 assignment, Legal Environment of Business homework help

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Business Finance

Description

The legal form an entity or individual takes is a decision that must be considered from a risk and liability perspective, not simply one of ease of formation or cost. Form can impact the entities ability to grow and, in some circumstances, its ability to survive. As you consider this reality and approach this assignment, consider not only the form the business takes but also the way it will be governed. Remember the law requires business leaders conduct their business ethically and within the boundaries of the law.

Assignment Steps

Resources: Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues: Ch. 14, 15, 16 and 17; Week 2 Electronic Reserve Readings; Legal Source database located in the Week 2 Electronic Reserve Readings

Scenario: You are sole proprietor presenting to a group of investors where you are seeking 20 million dollars to raise capital for your manufacturing company.

Prepare a 10- to 15-slide Microsoft® PowerPoint® presentation for your potential investors including both parts:

Part I:

Choose the one form of organization best suited for your manufacturing company and explain why:

  • Partnership
  • Limited Liability Partnership
  • Limited Liability Company (including single member LLC)
  • S Corporation
  • Franchise
  • Corporation

Outline for the investors which form of organization (from the list of six under the first bullet) would be the least suited and why?

Part II:

Address the following for the investors regarding the corporate form of organization only (from the list of six under the first bullet):

  • Summarize for investors what legal liabilities could arise for the Director or officer of that board?
  • Explain how you could minimize those liabilities for the Director or officer of that board?

Cite a minimum of three scholarly references. One scholarly reference must be from the University Library.

Format your presentation consistent with APA Guidelines.

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Explanation & Answer

Attached.

The Legal Environment of
Business

Student’s Name
Institution

Partnership
A partnership is a form of business where
the involved individuals contribute to raise
the required capital to start the business.
However, the partners may opt to seek for
financial help to facilitate the start of the
business with the aim of making profits ad
repay the money borrowed. A partnership
form of business has some of its major
disadvantages that disqualify it from not
being the best option to invest the $20
million.

Reasons for not choosing a
partnership
In case the business fails to make progress
as anticipated, the liability of the partners
is not limited to the contributed money
of $20 million but can extend to personal
property in the clearance of the debts of
the partnership. In such a case, the losses
vulnerable to the partners is uncertain
and can affect personal savings and
investments due to the unlimited liability
(Oliver, 2016).

Reasons for not choosing a
partnership
The valuation of assets during a partner joining or
leaving the business is a costly event that must be
conducted to establish the payment de to be
made to the partner leaving or the amount of
money to inject by the partner joining. The cost
of valuation is considered to be part of the
business process and is shared equally or
according to the set ration of sharing profits. The
partners who are not joining or leaving feel the
impact of the exercise and have no option other
than accepting such an event to take place at the
cost of all partners.

Reasons for not choosing a
partnership
The constitution of a partnership business
is not strict hence friction or
disagreements among the partners may
case losses or dissolution of the business.
Partnerships are in most cases formed by
family members or friends. In case an
issue arises that renders some of the
partners not in good terms, they ma...


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