...from company assets as long as they do not comingle personal and business accounts and meet other related legal requirements. This is the best structure for Alexander because he will be protected but does not have to appoint a board of directors or pay annual dues associated with a corporation. 2. D: When a contract is created, both sides must give consideration in order for the contract to be binding. Ms. Smith gave consideration in the form of the promise to pay the $200. However, her son did not make a promise or offer any consideration for the contract. Therefore, the contract cannot be enforced against Ms. Smith because she received no consideration of any sort, either in the form of a promise from her son or otherwise, for her promise. 3. A: When Joseph gave Caroline a life estate, Caroline received the right to enjoy the property for the remainder of her life. Caroline’s interest thus expired upon her death, meaning she cannot will an interest in the property to anyone. Upon Caroline’s death, the property would revert to the remainderman named in the life estate (if such a person existed) or to the person who originally owned the estate (i.e., the person with a fee simple absolute, or absolute and undivided ownership). In this case, Joseph had absolute ownership until he granted Caroline a life interest, so when Caroline died, the life interest ended and Joseph regained total ownership. 4. C: An agency law doctrine known as respondeat superior stipulates that the master...
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... Roreita Walker Law and Ethics in the Business Environment July 23 2011 Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. It does not matter if the parent had nothing to do with the biological child. The employee can still take advantage of the Family and Medical leave Act. The law interpretation of parent is as follows (7) PARENT.--The term "parent" means the biological parent of an employee or an individual who stood in loco parentis to an employee when the employee was a son or daughter. (FMLA) by the interpretation I would say it does not matter how much time the biological parent spent with the child or if he or she was actively involved, the child still has a legitimate claim for leave to take care of that parent. There has to be a clear definition of the word parent, if not it would open the door for Employers to have their own interpretation of the law. If the FMLA act was not specific in its definition of the word “parent “then employers would dismiss your claim if they felt as if that did not meet their definition of...
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...MODULE - 1 Forms of Business Organisation Business Environment 3 Notes FORMS OF BUSINESS ORGANISATION 3.0 INTRODUCTION After identifying the business in any field e.g., Insurance, it is necessary then to have a legal entity to be known in the society. The legal entity can be in any form of a business organization. The various forms of organization are as follows: 1) Sole proprietorship 2) Partnership 3) Co-operative Society 4) Joint stock company (Private and Public) These are explained in brief as follows:3.1 OBJECTIVES At the end of this lesson you will be able to know Various forms of organization Its formation & features Merits & Demerits 3.2 SOLE PROPRIETORSHIP 3.2.1 Meaning: The sole proprietorship is a form of business that is owned, managed and controlled by an individual. He has to arrange capital for the business and he alone is responsible for its management. He is therefore, entitled to the profits and has 24 DIPLOMA IN INSURANCE SERVICES Forms of Business Organisation MODULE - 1 Business Environment to bear the loss of business, however, he can take the help of his family members and also make use of the services of others such as a manager and other employees. This type of business organisation is also called single ownership or single proprietorship. If the business primarily consists of trade, the organization is a sole trading organization. Small factories and shops are often found to...
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...MODULE -2 Business Organisations Notes 5 FORMS OF BUSINESS ORGANISATION ou have studied in the first lesson about the business, its significance and the classification of business activities. You are also aware that these activities are carried out by individuals in an organised form of a business house having different patterns of ownership and management. A single individual may own the business or a number of individuals may come together to own the business jointly. So, based on ownership, we have different forms of business organisation like a proprietary concern, a partnership firm or a company. In this lesson, you will learn about the various forms of business organisation (excluding a joint stock company), their characteristics, merits and limitations, suitability and the steps involved in their formation. Y OBJECTIVES After studying this lesson, you will be able to: • • • • • explain the concept of business organisation; state the meaning and characteristics of Sole Proprietorship, Partnership, Joint Hindu Family Business and Cooperative Societies. identify the merits and limitations of these forms of business organisation; describe the suitability of these forms of business organisation; and explain the steps in the formation of these business organisation. 5.1 BUSINESS ORGANISATION You have already learnt about the meaning of business and the various types of business activities like industry, trade, transport, banking, insurance etc. If you observe...
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...INTRODUCTION Agency has been defined as a legal relationship that exists between two persons where one called the agent is considered in law to represent the other called the principal in such a way as to affect the principal’s legal position in relation to other parties. This presentation will explore the below: • Definition of agency • Creation of agency • Effects of contracts made by agents • Rights and duties between principal and agent • Termination of agency DEFINITION OF AGENCY An agent is a person employed to do any act for another or to represent another in dealings with third persons. Cap 23 Laws of Kenya is the law that governs Agency law in Kenya. The law of agency is based on the common law rules developed by English courts and rulings made by other courts in the Commonwealth. On March 14th 1978, Kenya adopted the convention on the law applicable to agency. In Timmins (Town) v Brewers' Warehousing Co. Ltd (1962) Schroeder, J.A. stated, inter alia, that "the outstanding feature of an agent's employment in a legal sense is that he is employed primarily to bring about business relations between the principal and third persons, and this characteristic is perhaps the most distinctive mark of the agent as contrasted with others not agents who act in representative capacities". The law of agency prescribes the legal rules for determining- (a) How a person may become an agent; (b) The rights and duties between the agent and the principal; (c) The relations...
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...Business Entities Lisa Ramos BUS311: Business Law I Instructor: July 28, 2014 Business Entities I. Introduction “Business owners are wise to consider the fundamental issue of organizational formbefore they become too deeply immersed in business operations.” (Rogers, 2012) When it comes the laws of business there are is a large range of categories and topics which include the type of entity to become and how it affects contracts, liabilities and tax information. We must be aware that there is more than just one type of entity and determining what type of business to become can have some legal implications and therefore must be reviewed thoroughly. II. Types of Entities A. Sole Proprietorships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities B. Partnerships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities C. Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities D. S Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities E. Limited Liability Company (LLC) 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities III. How are contracts enforceable? A. Five...
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...some and friends, who might be willing to associate with him to provide necessary funds and infrastructure. What sort of business organization should he go and why? ANS. – With the expansion of business, it became necessary for a group of person to join hands together and supply necessary capital and skill. Sanjeev may possess exceptional business ability but doesn’t have much by the way of money and infrastructure; he can have a financing partner. In this case his friend is financing partners who provide necessary funds and infrastructure to him for starting his own bakery and confectionary venture. A financier may need a managerial expert as well as a technical expert and all of them may combine to set up a business with common ownership and management. For starting his own bakery and confectionary venture, he should go for partnership because partnership has many advantages as follows: (i) Easy Formation: Formation of partnership is easier and no legal formalities are to be observed to establish it. At the same time, unlike a company, not much of expenses are incurred for its formation. However, as compared to sole trader’s concern, it may involve certain difficulties, especially in selection and organization of partners etc. (ii) Larger Financial Resources: In a partnership, since several people pool their financial resources into a common business, the amount of capital accumulation becomes much higher than what can be contributed by one person in sole’s trader’s...
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...of a firm's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure 3. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital B. debt C. investment capital D. net capital E. capital structure 4. A business owned by a solitary individual who has unlimited liability for its debt is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 5. A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 6. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a: A. generally partner. B. sole proprietor. C. limited partner. D. corporate shareholder. E. zero partner. 7. A business created as a distinct legal entity and treated as a legal "person" is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. unlimited liability company. 8. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A. articles of incorporation ...
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...Part 1 Business Enterprises in China 1.0 Introduction 2.0 Proprietorships 3.0 Partnerships 4.0 Corporates 1.0 Introduction In the People’s Republic of China, business organizations may be classified in to three main classes: individual proprietorships, partnerships, and corporations. The laws that effect these forms of business enterprises are diverse. There is no single code or statute that governs the PRC law of business enterprises. According to the sources of capital, there are domestic capital enterprises which are regulated by Sole Proprietorship Enterprise Law of the People's Republic of China , Partnership Business Law of the People's Republic of China, and Company Law of the People's Republic of China and foreign capital enterprises which are regulated by The Measures for Administration of the Establishment of the Partnership by Foreign Enterprises or Individuals within the Territory of China, Law of the People’s Republic of China on Chinese-Foreign Con-Tractual Joint Venture, Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures, and Law of the People’s Republic of China on Foreign – Capital Enterprises. The relevant laws are the Security Law , the Fair Competition Law and the Antitrust Law. 2.0 Proprietorships 2.1What is a sole proprietorship enterprise A sole proprietorship enterprise means a business entity established within China with its capital contributed by one individual and its assts owned personally by the sole proprietor...
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...Acme Fireworks Outline I. Introduction A. Thesis Statement There are many benefits to having a sole proprietorship in the firework business, but if the sales decrease will the owner be able to maintain a fully functional business entity with the extra staff that were incurred due to the demand of more firework displays that were put into contract? The owner wants to know more and I will try and help him with his business through proposing a new business entity, different employment types and relationships relevant to law, the liability to Acme Fireworks if spectators are injured due to his displays, and the contract and whether it is enforceable under UCC. II. Body paragraph #1 - Topic Sentence # 1 As with all other business, Acme would be no different when coming into a problem with potential personnel liability. If a spectator is injured by a stray firework from one of their display stands do you think they would be responsible or would the blame fall on someone else? A. Supporting Evidence In a recent excerpt from Findlaw.com states, “Injured spectators may be able to hold the person or company setting off the fireworks liable through negligence”. B. Explanation Regardless of where the firework display stands are set up for these different business organizations, Acme Fireworks will ultimately still be responsible for injury if for instance a stray firework were to go off and hit a spectator...
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...I. Sole Propietership A sole proprietorship is a type of business where there is no legal distinction between the business and its owner. It is the most popular form of business in the United states. Before you decide that this is the tyoe of businwaa you want to run, you should consider the following. • Ownership- In a sole proprietorship, there is only one owner. They are in control of all areas of the business and are legally responsible for the business’s finances. Those finances would include any debts, loans, and any losses that the business has accured. The owner also revieves all the profits, however they will be taxed a tax that specific to their type of business. However if the owner dies, the business dies with the owner. In order to keep the business going after the death of an owner, there must be a living will of will that thransefers the business to someone else. • Management- Since a sole proprietorship is a small business, the owner manages it by himself. They can hire employees to help out with the day-to-day dealings of the business, but ulitimate control is the owners. They have the final say. • Finance- The owner is responsible for getting all the money needed to run a sole proprietorship. They can go to others, like the bank, relatives, or friends, for the money. Tax planning for a sole proprietorships is extremely hard. The United States has several different tax rates depending on what income is being taxed. Ordinary...
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...Work Submitted to the Ramon V. Del Rosario College of Business De La Salle University – Manila In Partial Fulfillment Of the requirements in BUS520M Business Law Submitted by: GROUP 4 Amparo, Lourdes Lagman, Mia Marie Legaspi, Jill Noreen Submitted to: Atty. Antonio Ligon April 6, 2016 I. Background 1. Philippine Business a. History 2. Doing business in the Philippines b. Forms of business 3. Definition and Origin of Joint Venture (JV) II. Statement of the Problems 1. What are the applicable laws in joint ventures? 2. What are the tax implications? 3. Are our current joint venture laws sufficient? Especially with the Asean integration? III. Statement of Objectives The research study aims to: 1. Identify the applicable laws in joint ventures 2. Identify the tax implications in joint ventures 3. Identify insufficiencies (if any) in our current joint venture laws and make recommendations IV. Discussion 1. Nature of Joint Ventures in Philippine setting 2. Governing Laws 3. Foreign Investments 4. Scope of Joint Venture Business Activity 5. Taxes in Joint Venture 6. Example of JVs in the Philippines V. Analyses VI. Recommendations VII. Learning Points VIII. References I. Background of Philippine Business History Historians state that the early start of business in the Philippines dated back in the 14th century, however...
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... Law, Ethics, and Corporate Governance LEG500009016*201102 January 29, 2011 Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The Family and Medical Leave Act of 1993 (hereinafter FMLA) provides an ethical basis for human resource decisions involving conflicts between an employer’s interest in having an employee at work to pursue the organization’s needs and an employee’s need to be away from work to attend to serious family needs that include the serious health condition of the employee, a family member, or the addition of a new child to the employee’s family. If that child resides in the home of the caregiver such as that parent is providing care or guardianship even if that child is not their biological child, then yes, they would be entitled to the Family and Medical Leave Act to care for that child. They would have to show proof of court documents stating that they are the legal guardian of the child. The FMLA encourages employers to view employees who adopt children or act as foster parents of children as parents with equal rights to leave as employees who are biological parents. Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under the FMLA. Herman at Rally Motors owns a small business car dealership...
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...employees child or placement of a child in foster or adoptive care 2) care of an immediate family member (spouse, child, parent etc.) who has a serious health condition or 3) to care for an employee’s own serious health condition (Solis, Updated 2010). I. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. Code § 825.122 (b) Parent. Parent means a biological, adoptive, step or foster father or mother, or any other individual who stood in loco parentis to the employee when the employee was a son or daughter as defined in paragraph (c) of this section. This term does not include parents “in law. Based on the description of a parent in the above code, Mr. Sulka had every right to take family leave to care for his elderly father when he comes home from the hospital. Employees are entitled to take personal time from work to care immediate family members, such as parents, whether there was a relationship between the two of them or not. Therefore Herman must allow Tony to take personal time to care for his father after surgery. It does not matter that Tony Sulka and his father did not have a close relationship, his father is still...
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...Law of agency From Wikipedia, the free encyclopedia Jump to: navigation, search The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when a person, called the agent, is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party.[1] Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between: • Agents and principals; • Agents and the third parties with whom they deal on their principals' behalf; and • Principals and the third parties when the agents purport to deal on their behalf. The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in criminal law or tort for the acts or omissions of another. In India, section 182 of the Contract Act 1872 defines Agent as “a person employed to do any act for another or to represent another in dealings with third persons”...
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