Business Law - case study solutions

Running head- BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note
1.

Business Law1
Answer to 1
Issues
The main issues of this problem include the following:
1. What are the available business forms that Mike, Adam, and John may enter?
2. What are the advantages and disadvantages of such a business form?
3. What is the suitable business forms they shall enter?
Rule
The main kinds of business forms are sole proprietorship, partnership firms and
corporation.
Analysis
The kinds of business kinds and their sub kinds are:
1. Sole- proprietorship: This kind of business is owned by one owner and is an
unincorporated business form.
Advantage:
I. Full Ownership of the business
II. Simple tax operations
Disadvantage:
I. No legal separation between the proprietor and business.
II. Hard to raise the business capitals.
Types:

Business Law2
 Self-Employed Business: This kind of business is owned by a single owner and
they are not employed as an employer.
 Independent contractors: They are generally appointed or hired by another
employer to perform particular tasks as are required or contracted for (Ustymets,
2017).
 Franchise: It is generally paid as a fee to the franchiser in return of the brand
name of the company.
2. Partnership Firms: This type of business are conducted by two or more partners, and
they operate the business with equal shares and are liable for the profit as well as the
loss of the company together (Cheney, Santa Cruz, Peredo, & Nazareno, 2014).
Advantage
I. Equal Share of the risk and the Liability
II. Management in a shard way.
Disadvantage
I. Any partner can be held liable for the wrongful conduct of the other
II. Conflict Risk between the partners.
Types:
 General partnership: Business between two or more people who share equal
shares of the Liability and the risks of the business
 Limited partnership: Partnership between one or more members among which one
member possess unlimited Liability, and the other is the limited partner who has
limited Liability.
 Limited Liability partnership: This kind of business in which one or all the
partners poses a limited liability.