Business Law - Chapter 19

• Sole Proprietorships
• Partnerships
• Limited Liability Partnerships (LLP)
• Limited Partnerships
• Corporations
• Limited Liability companies (LLCs)

• Anyone who does business without creating an organization 
• The owner pays personal income taxes on all profits and is personally liable for all business debts.

• Partners have unlimited liability for partnership debts 
• Income is passed through the partnership to the individual partners who pay personal taxes on the income

Allow professional to avoid personal liability for the malpractice of other partners

• one or more general partners - unlimited liability for partnership loss
• one or more limited partners - liable only to the extent of their contributions

• legal entity separate and distinct from its owners 
• perpetual existence
• Shareholder - owners elect directors
• Shareholders are not (normally) personally liable for the debt of the corporation

• Operating agreement: members decide how the business will be managed and what rules will apply to the organization 
• Limited liability of a corporation - not personally liable for debts 
• tax benefit of a partnership - pass through taxation

• Joint venture
• syndicate
• joint stock company
• business trust
• cooperative

two or more persons or business entities in contemplation of a limited activity or a single transaction.

investment group that undertakes to finance a particular project

a business form similar to a corporation in some respects but otherwise resembles a partnership

• Created by a written trust agreement that sets forth the interests of the beneficiaries and obligations and powers of the trustee(s) 
• Beneficiaries are not personally liable for the debts or obligations of the business trust

An association organized to provide an economic service to its members

• Distributorship (automobile dealership)
• Chain-style operation (fast food)
• manufacturing/processing-plant arrangement (pepsi-cola)

• Contract Law
• Federal and state statutes 
• Agency regulations - Franchise Rule

• terms and conditions of the franchise
• rights and duties of the franchiser and franchisee
• territory
• abide by certain standards of quality relating to the product or service

termination date or conditions are stated in the contract