LAW 122 Study Guide - Midterm Guide: Independent Contractor, Property Insurance, General Position
1 Oct 2016
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Chapter 1 -risk management and sources of law. Businesses exist primarily to make money to maximize gains & minimize loss. Various factors affect success and failure in business decision-making (choices: ex. **winning/losing in the business world depends upon the ability to make good choices from a legal perspective. Law affects your options in business create a corporation, create a property. Risk management process of identifying, evaluating, and responding to the possibility of harmful events goal is not to eliminate risk; it is to manage them o o. Risk avoidance risks that should be avoided altogether. Risk reduction some risks can be reduced to an acceptable level through precautions. To find another alternative if anything happens, bank to loan money but knowing that if they can"t pay them back they can sign a mortgage that way at least the property is with them. Incorporation allows the company to be limited liability.
