That is the qustion, and I need answers. The subject is Business Law. 1. In a so
ID: 352340 • Letter: T
Question
That is the qustion, and I need answers. The subject is Business Law.
1. In a sole proprietorship how many of you could be an owner? If it is less than all of you what position would the rest of you hold?
2. In a general partnership how many of you could be an owner?
3. In a sole proprietorship who gets the profits? Who is responsible for the losses and debts if the business cannot pay?
4. In a general partnership who gets the profits? Who is responsible for the losses and debts if the business cannot pay?
5. In a sole proprietorship who gets to make the management decisions?
6. In a general partnership how are management decisions made?
7. How do you raise capital for a sole proprietorship (more than 1 alternative is needed for this answer)?
8. In a general partnership what can partners contribute other than money as their capital contribution?
9. Do all partners in a general partnership have to work in the business to get a share of the profits and losses?
10. What happens in a sole proprietorship situation when the debts of the business cannot be paid from the assets of the business?
11. Who is responsible for paying the taxes for profits in a sole proprietorship? In a general partnership?
12. Do you need to have a written contractual agreement to have an enforceable general partnership situation?
13. What happens to a sole proprietorship if the owner dies?
14. What happens in a general partnership if one of the partners dies?
15. What happens if one of the partners wants to leave the business – can they, and do they need the permission/agreement of the remaining partners?
16. Are general partners automatically entitled to at least minimum wage or a salary of some kind because they work in the general partnership business?
17. What is meant by the term “joint and several liability” for your partners actions in a general partnership?
18. What decisions made by one partner, that are harmful to the partnership business, can the other partners sue the partner for that made the decision?
19. Can one partner make a decision without the consent of the other partners?
20. Can one of the partners in a general partnership be “forced out” against their will?
21. State at least three reasons partners in a general partnership should enter into a “buy-sell agreement.”
22. Name at least two (2) pros and two (2) cons to forming a business and entering into a franchise system to do so.
23. Assume that your group is a group of investors that have decided to invest together in an existing franchise system. (Pick a business that is an existing franchise that you think has the best chance of making money in Springfield, Missouri). Then state which type of franchise it is.
24. Describe three of the ways you franchise agreement may require you to pay the franchisor for your franchise rights.
25. Who is liable when someone is harmed by a franchisee’s services: the franchisee, the franchisor, both or it depends?
Explanation / Answer
1.In a sole proprietership only a single person can be the owner. The rest will be given positions as per the role they have in the business like the CFO, CIO, CMO, CEM etc.
2. General partnership involves atleast two or more owners who share equal rights and responsibilities.
3. In a sole proprietorship the owner gets the profits and he is liable to pay the losses and debts if they cannot be recovered from the business,
4. In general partnership the profits are distributed among the partners in the ratio of their partnership and the losses and debts are also shared by them in the same way through ratio analysis of their partnership.
5. In sole proprietership the decisions are taken by the owner individually as he owns the business alone and is liable for all the risks and responsibilites of the business as well as will have all the profits made also himself.
6. The decisions in the general partnership is made by a mutual consent by all the partners. Meetings and con calls, whichever mode is possible is done and the issues are put up before all the partners. collective thinking is done keeping every partner's views in consideration and decisions are made taking the consent of all. If a partner does not want to participate in this decision making process then he should inform this to all the other partners beforehand.
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