...* A contract of business is signed between two people, one form Bangladesh and another form USA. Let’s assume that that the purpose of the contract is illegal in Bangladesh but legal in USA, then whether it will be contract or not? I think if two people of different countries signed a contract, which is legal in one country but illegal in another country it will be a contract. Because when two parties from different countries enter into a contract, they are governed by international contract law unless they agree to abide by the laws of one of the countries. International contract law concerns the legal rules relating to cross-border agreements. It is frequently applied to international sales contracts. This type of contract law is broadly based on the idea of good faith and fair dealing in contracts. These principles are the basis of contract law in most jurisdictions. Good faith includes fair negotiations, an obligation to cooperate and good faith when terminating a contract. It also ensures that unfair contracts or deals are not enforced. International sales contracts are governed by the United Nation Convention on Contracts for the International Sale of Goods from 1980. The convention was developed in the hopes of promoting international trade by developing a global set of rules for contracts. The convention is a compromise between legal systems of common law, civil law and socialist law. One key element of international contract law includes the provision...
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...Legal Forms of Business When considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends...
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...Legal Forms Of Business Business Law/531 September, 17th 2012 Introduction There are several forms of business an entrepreneur can choose from when starting a new business. Most organizations choose to start up with a sole proprietorship, a partnership, (LLC) limited liability or a corporation. When deciding which legal form is best for your company, one must understand how each legal form works, then choose the right one that best fits the company’s needs. If a company is unsure of which form to choose from it is best to seek some legal guidance or an accountant? Small businesses may want to start with a sole proprietorship or partnership, mainly because personal liability is not a huge concern. These two forms are less complicated and inexpensive to start up and sustain. Corporations on the other hand are more complicated, cost more and are harder to form, however depending on the small business they may want to choose limited liability instead. Making the decision when choosing between LLC and cooperation factors on, incomes tax rates, personal liability, business debts and court judgments. Franchising a business is a way to expand a small business to the next level. Expanding is never easy but the best way to start is to make sure your company has enough money to pay for the expansion. When a company decides to expand they must make sure it will be profitable and get the businesses name out there. (Elgin, Jeff. September 1st 2002) Scenario 1 Mike and John wants...
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...objective to start a business is to achieve business aims by maximizing its profits. A business is established with a single person or by many people. The legal forms of business are: Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Company, S corporation, franchise, and corporate form are the legal forms of business. The common impacts these forms of businesses have are: liability, tax, legal, and managerial. Sole Proprietorships Sole Proprietorships are the simplest form of business because they have one owner and do not require any registration from federal, state, or local governments. This type of business is suitable for a person who prefers to start a small grocery store, plumbing, consultancy, or a tutor. Sole Proprietorships needs a small amount of capital to start the business. This type of business does not have stocks. A sole proprietor owns the assets. At the same time, he is responsible for all his debts. Sole Proprietorships taxes are straightforward and the reported income on this type of business is reported as regular income. There are no legal restrictions in this business and are flexible for many types of enterprises, products, and services. General Partnership Partnership is a business, when two or more partners combine and share equal responsibilities on the liabilities and operations of that business. This type of business can be preferred if there are two licensed partners to start a business. A good example...
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...Legal Forms of Business Ismael Aguilar Business Law / LAW-531 September 10, 2012 Erica Woodford Legal Forms of Business When an entrepreneur is in desire to start a new business, the available options for the legal forms of business are somehow overwhelming. Each form of business provides different advantages and risks, a good understanding of the main aspects of these form of business is a step that the entrepreneur must complete to avoid future drawbacks. During the following paper, we will discuss different form of business, enlist some of their main characteristics, and provide examples of possible scenarios for new business where these different legal forms of business can be used. Sole Proprietorship The sole proprietorship is the most simplest and common form of business in the United States, where the sole proprietor, is the business (Cheeseman, 2010, p. 530). Some of the advantageous characteristics of this legal form of business are the low capital requirements to start the business, the easy to transfer or sell the business, the tax is reported in the owners income tax, and that the owner receives all the profits. In the risks side, the entire capital contributions can be loos if business fail, and the fact that the sole proprietor has unlimited liability, are two characteristics worth listing. Sole proprietorships are good legal form of business for small entrepreneurial projects that can be funded with the owner’s own capital and personal loans, and where...
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...Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be sold or transferred if the owner choose, no other approval is necessary. Scenario: A small neighborhood businesses, sometimes called, neighborhood store, are an example of sole proprietorship. Creating a sole proprietorship is easy and low cost with no government approval is required at the federal and state level. A license to do business within the city is required at the state level. This form of business is excellent for a person with limited amount of money to start a small business, Sole proprietorship is responsible for business’s contract and torts committed, The sole proprietorship has...
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...Business Law 531 Legal Forms of Business Lyneeta A. Johnson University of Phoenix October 1, 2012 Christine Benway Legal Forms of Business Starting a business is an exciting event for a business owner; it signifies the beginning of a business venture expected to be successful. Choosing an industry, identifying the target market, and developing a business strategy can be time consuming, however; the rewards outweigh the work. Deciding what legal form of business to operate can be a difficult decision for entrepreneurs because of the requirements that must be met for each legal form of business. Following is a discussion about the different forms of business. A scenario simulation for each form of business including justification for the preferred business form is also present. Sole Proprietorship According to Cheeseman (2010, p. 529) “an entrepreneur is a person who forms and operates a business.” An entrepreneur starting a business independently is a form of sole proprietorship. The owner of the business is the sole proprietor. A recent college graduate who opens a mobile dog grooming service is an excellent example of a sole proprietorship. The graduate who has experience with animals from walking dogs in the neighborhood to gain extra income would be ideal...
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...Legal Forms of Business When considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends...
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...Legal Forms of Business Kaley Hutsell LAWP/531 Professor December 3, 2012 Legal Forms of Business When beginning a business there are several things to consider. The first consideration should be what form of business will be used. There are pro’s and con’s to each option and it is important that every angle is considered before making a decision. This paper will provide examples and reasons for choose sole proprietorship, partnership, limited liability company, s corporation, franchise, and corporate form. Sole Proprietorship Rebecca wants to open a small town resale clothing shop. She has a small savings that can be used to pay the first three months rent and buy clothing from patrons to sell in her shop. With minimal legal paperwork required, typically nothing more than a small business license in the operating city, a sole proprietorship is the easiest way to go. Rebecca becomes the sole owner and does not require any input from others when making decisions regarding her business. The only negative to choosing this type of business is the fact that Rebecca also becomes personally liable for all business related activities, including losses and misconducts. Partnership Amy and Amanda are both licensed Cosmetologists that are interested in starting a salon. Neither individual has the capital to start one on their own. The two women decide that together they have enough capital to secure a location, the assets required to furnish the salon, and the knowledge...
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...Sole proprietorship The sole proprietorship is the simplest form of business entity. Single person carrying on a business for profit. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business beginning and ending the business venture are uncomplicated steps requiring little more than the decision of the sole proprietor This can be an advantage, especially when the proprietor is not certain whether he or she will wish to continue the venture for any significant length of time and thus is unwilling to spend much money on filings, legal drafting, and the like. Disadvantages: The sole proprietorship does not have any legal existence separate from that of its owner. It also removes any shield from liability that might otherwise protect the proprietor. Thus, the proprietor is personally liable for all obligations of the business Partnership In contrast to general partnership law, a limited partnership is not dissolved by the death of a limited partner, and a limited partner may not compel dissolution of the partnership absent contrary provisions in the partnership agreement partners in general partnerships are jointly and severally liable for all obligations...
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...Legal Forms Business Paper Brandi Austin LAW/531 April 16, 2012 Aaron Kemp Legal Forms Business Paper Deciding the form of business organization is one of the most important phases in developing a company. One must understand the pros, cons, requirements and qualifications needed before determining which form is best for the business. The next few paragraphs will discuss various forms of businesses and provide scenarios to clarify the appropriate use of these forms. Sole Proprietorship A sole proprietorship is the simplest form of business organization (Cheesman, 2010). Easiest put, the owner of the business is the business. There are several major advantages to operating a business as a sole proprietorship. On the positive side, forming a sole proprietorship is very affordable and can easily be transferred or sold without the approval of additional partners. On the negative side all liability falls on the sole proprietor. My current company is listed as a sole proprietorship. In 2008, I wanted to secure my company name and be established in some way as a real business entity. My funds were low at the time, so the fastest and most frugal method for me to establish was a sole proprietorship. Because business was still in the infant stages, the threat of personal liability was not a concern. Partnership A general partnership, or partnership, is a voluntary association of two or more persons for carrying on a business as co-owners for profit. General partners...
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...Year 12 BTEC Level 3 Subsidiary Diploma in Business BTEC Level 3 Diploma in Business Year 12 BTEC Level 3 Subsidiary Diploma in Business BTEC Level 3 Diploma in Business Unit 1- The Business Environment Unit 1- The Business Environment | Student name | ------------------------------------------------- Assessor name | | | Date issued | Completion date | Submitted on | 5th September 2013 | 29th November 2013 | 2nd December 2013 | Qualification | Unit number and title (Credit Value) | BTEC Level 3 Subsidiary Diploma in BusinessBTEC Level 3 Diploma in Business | Unit 1- The Business Environment Credit Value- 10 | | | Assignment title | | The aim of this unit is to give learners the fundamental knowledge of a range of business organisations, and the many factors that shape the nature of organisations operating in an increasingly complex business world. | | Assignment title | | The purpose of this assignment is to: 1. Know the range of different businesses and their ownership 2. Understand how businesses are organised to achieve their purposes 3. Know the impact of the economic environment on businesses 4. Know how political, legal and social factors impact on business. | ScenarioYou work for the Chamber of Commerce as a Business Adviser and have been asked to visit businesses in the local area to outline to them the variety of businesses which exist and to explain to them the factors which...
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...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
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...Legal Forms of Business Legal Forms of Business Entrepreneurs face a difficult decision in choosing a legal form of business. The preferred form of entity is dependent on many relative factors, such as the type of organization and business environment. Different forms of legal businesses have different tax, investment, and financial implications. The best-suited business calls for a thorough analysis of pertinent facts before making a decision – requiring some careful planning and strategy. This study provides an analysis of seven forms of legal business. Sole Proprietorship Sole proprietorships are fairly simple and inexpensive to create and operate. Legally, a sole proprietorship is inseparable from its owner, and therefore the owner is personally liable for business debts (Cheeseman, 2010). The tax implications for a sole proprietorship are simple. The business owner reports profits and losses on their personal tax returns. Sole Proprietorship is the preferred form of business in establishing or operating a small business where personal liability is not a big concern. Sole proprietors own businesses in many industries. Some of the more common sole proprietorships are landscaping services, housecleaning services, independent writing services, and tutoring services. * Landscapers tend to work alone or hire a small team of employees, providing landscaping services to homeowners and businesses. Sole proprietor may take on independent contracts and projects...
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...Legal Forms of Business Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Develop scenarios in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred. In today business world entrepreneurs are presented with many forms of business organization to choose from to conduct their business. Every form of business brings advantage as well as disadvantage and the selection of the legal form of the business organization available should base on according to Cheeseman (2010), “factors, including the ease and cost of the formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax consideration, and the like.” (Cheeseman, 2010). Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate are the most known entrepreneurial forms of conducting nosiness. Below are you will find scenarios in which each of these forms of business would be the preferred form and justification why the corresponding business form is preferred. Sole Proprietorship Sole proprietorship represents the simplest form of the legal business organization where the owner, called in this form of business organization the sole proprietor, is...
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