NOTES JULY 1, 2013 INTRO TO BUSINESS LAW
INTRO TO BUSINESS ASSOCIATION
An organization involved in trade of goods, services, or both to consumers.
WHAT IS AN AGENCY
An agreement between 2 people when one agrees to represent or perform an act for another
The employer is the principle
The employee is the agent
The principle has to be at the age majority and must be legal components
To be a principle you have to be legally competent
EMPLOYER
Is the Principle
EMPLOYEE
Is the agent
AGENTS DUTIES
Loyalty
Reasonable Care
Obedience
If not met the principle can sue the agent and recover profit
PRINCIPLES DUTIES
Reasonable Compensation
Reimbursement
Exception loss caused through fault of agent
The efficient and effective operation of a business and the study of this subject is called management
FIDUCIARY
A person to whom property or power is entrusted for the benefit of another.
MAJOR BRANCHES ARE
Financial Marketing
Operations
Human Resources
Strategic
Production
Service
Information Technology
FORMS CONDUCTING BUSINESS
Sole Proprietorship
General Partnership
Limited Partnership
Limited Liability Partnership
Limited Liability Company
Corporations (close public scoop corp. franchise joint ten cooperative business trust syndicate or investment group)
Close Corporation
Public
Cooperation
Franchise
Joint Venture
Syndicate or Investment Group
Business Trust
Cooperative
FORMS CONDUCTING INTERNATION BUSINESS
Direct export and import sales
Sales agent and representations
Distributorship
Joint Venture
Branch Subsidiary
Licensing
Franchise
NOTES JULY 2, 2013 PARTNERSHIPS
PARTNERSHIP
An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally.
CAPITALIZE ON RESPECTIVE ECONOMIC OR TALENT CONTRIBUTIONS!
ECONOMICS
Money
Goods
Vehicles
Uniforms
Supplies
Property
TALENT
Experience
Knowledge
Expertise
SET FOR
Short Term
Specific Goal
Held for full professional life or career
PEOPLE WERE GOING TO WORK FOR
Attorneys
Doctors
Accountants
Dentist
PARTNERSHIP AGREEMENT
Firm Name
Name and Address of Partners
Principle Office of Partnership
Nature and Scope of Partnership
The Duration of Profits and Losses Among Partners
Salaries, if any, to be paid to Partners
The duties of Partners regarding Management
Limitations on Authority to Bind Partnership
Provision for Admission and Withdraw of Partnership
Provision for Continuing Partnership upon withdraw death or other dissolution of the Partnership
Any other Provision deemed relevant by the partner
RIGHT OF PARTNERS
Right to Participate in Management
Right to Share Profits
Right to accounting
Right to Compensation
Right to Indemnification
Right to Return on Advance
Right to Return of Capital
Right to Information
DUTIES OF PARTNERS
Duty of Loyalty
Duty of Obedience
Duty of Care
Duty of Information
LIMITED PARTNERSHIP
Held liable only for the amount of his/her investment or promised investment in partnership
Can have no input in the operation of the business
Cannot work for the partnership
Limited partners name cannot be used in partnership name
General Partner/Managing Partner
JOINT AND SEVERAL LIABILITY
Can Sue One or All
TERMINATION/DISSOLUTION
Death of a Partner
Bankruptcy of a Partner
Withdraw
Illegality
INCOMING PARTNER
Liable for existing partnership debt and obligation only to the extent of capital contribution
DISSTRIBUTION OF ASSETS
Creditor except partners who creditors
Creditor-Partner
Capital Contributions
Profits
NOTES JULY 3, 2013 CORPORATIONS
CORPORATION
Entity legally recognized as independent of its owners, who are known as shareholders. A corporation can sue or be sued in its own name regarding its own rights and liabilities.
CORPORATION IS MOST COMMON BECAUSE:
Legal Advantages
Created purely by Statute
LEGAL ADVANTAGES ARE:
Independent of its owners
Can sue or be sued in its own name