Help me study for my Business class. I’m stuck and don’t understand.
Try to use more opinions than sources. Please reply to all of the questions below. Once completed with that, respond to one student’s answers by stating your opinions to them.
WEEK TEN – July 7-13 SMALL BUSINESS, PARTNERSHIP, LLC, LLP, CORP.
JOAN GOES NATIONAL AND BEYOND
Joan comes to you five years later after choosing to start her own business. It has been successful and she now wants to go national. However, she needs capital. She has two people who are willing to invest in her corporation if she chooses to go that route. She can get bank loans to grow the business, but is worried about the personal liability she might incur. What would you advise her to do? If you tell her to incorporate, how would you suggest that she structure the financing of the corporation? Explain.
Ever since the Ford Pinto case, Enron and now Murdoch there is an increasing number of laws passed that make corporations criminally responsible for their actions. The Supreme Court recently decided that because corporations are considered “a person” in the law they cannot be limited in their campaign contributions. In light of this recent decision, should corporations, and the corporate directors, be responsible for their criminal actions? Are corporations persons? Can you hold the corporate person responsible as well as the directors? If yes how?
PARTNERSHIPS VS SOLE PROPRIETORSHIP
Joan, is a jewelry designer who had created a unique new jewelry piece called a neacklet. It can be either a necklace or a bracelet. She would like to start her own business, but is not sure which form would suit her needs. She is very concerned about keeping control of her designs but has no capital except a small business loan. An older gentleman who owns his own jewelry store is eager to retire but has no buyers for his business. He has offered Joan a partnership with a chance for her to buy him out later. NewJewelry a large jewelry franchise who sells to the Home Shopping Network has offered Joan a chance to buy into their franchise and they will trademark and patent her design as part of their jewelry line. Joan comes to you to ask your advice. What would you tell her and why? Make sure that you explain the advantages and disadvantages of every business opportunity.
SMALL BUSINESS THOUGHTS
Read the articles below and identify some of the major legal issues that face small business today.
Select one issue and discuss its implications for the small business owner. What can they do to avoid the problem and what should they do should the problem arise?