Legal Underpinnings of Business Law

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Imagine that you own each of the following businesses:

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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Running Head: Legal Underpinnings of Business Law

LEGAL UNDERPINNINGS OF BUSINESS LAW

Name

Course

Institution

Date of Submission

YEAR

1

Running Head: Legal Underpinnings of Business Law

2

Matrix
BUSINESS TYPE

PERSONAL LIABILITY AS AN

WAYS OF LIMITING

OWNER

EXPOSURE OF LIABILITY
AS AN OWNER

Tinker Home

In this, I will personally be

Talking full control on all

Security

responsible for the legal action

business commitments and

Service(Sole

taken for breaching contracts. I will

avoiding external

Proprietorship)

carry unlimited personal liability

interferences from people who

and burden.

might eventually influence
breach of contract.

Tinker and Tallor’s

Risks and liability in this will be

Ensuring that the number of

Home Security

independently accounted for by me

partners are limited and

Service (General

and my partners. I will not be

relieving duties members who

Partnership)

relieved of the burden irregardless

are rogues and non-committal.

of the number of shareholders.
Tinker and Tallor’s

In this scenario, Since I am the

Ensuring that during its

Home Security

general partner I will carry the

formation only limited

Service(L.P)

heaviest responsibility of a breach

liability protection is

in comparison to my limited

considered to avoid loss and

partners.

utilising powers of a general
partner over the unruly limited
partners.

Tinker and Tallor’s

Since it’s a corporation, each

Ensuring a maximum number

Home Security

member of the corporation

of shareholders of a

Running Head: Legal Underpinnings of Business Law

3

Service

including me will have limited

corporation since the greater

(Corporation)

liability instead of maximum

the number of shareholders

liabilit...


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