LAW 122 Study Guide - Winter 2018, Comprehensive Midterm Notes - Test Cricket, Sole Proprietorship, Negligence
LAW 122
MIDTERM EXAM
STUDY GUIDE
Fall 2018
LAW 122 CH 1
21: Basic Forms of Business Organizations
Ch 21 Agenda – March 6th
§ 21 - Purpose: to understand the legal structures for the operation of a business.
§ Theme: What are the four basic forms of business organization?
1. Sole proprietorship
2. The general partnership (partnership) –
3. Limited liability partnership
1.
2.
4. The limited partnership
5. The corporation
A fundamental Question: Why do we need the state (govt regulation) to create rules
for business organizations?
Legal Principles: Legislation: Business Name Act, Ontario Partnership
Act & Case Law (see footnotes) & The Partnership Agreement (contract)
21-2
Four Types of Business Organizations
How does business organizations address risk? – through structure of the business
organization.
find more resources at oneclass.com
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One: Businesses must understand and manage legal risks – the risk management
process – in this context, the risk to third parties (stakeholders)
Three steps:
1.
2.
3.
Identification: recognize legal risks (of the bus organ) § Sole proprietorship or
limited partnership
Evaluation: assessment of legal risks
§ Under each business organizational structure
Response: reaction to legal risks § What should you do?
21-3
Risk Management
Sole proprietorships Partnerships Limited partnerships Corporations
21-4
Sole Proprietorship
Created once person begins to conduct business
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Theme: what are the four basic forms of business organization: sole proprietorship, the general partnership (partnership) , limited liability partnership. Legal principles: legislation: business name act, ontario partnership. Act & case law (see footnotes) & the partnership agreement (contract) One: businesses must understand and manage legal risks the risk management process in this context, the risk to third parties (stakeholders) Identification: recognize legal risks (of the bus organ) sole proprietorship or limited partnership. In the summer, you agree to cut your neighbour"s lawn and you enter into a contract to cut the lawn every two weeks for two months. Thus, you are carrying out a business as a sole proprietor. Your business grows and you are too busy so, you hire your friend as an employee and enter into a contract with your friend. You remain responsible for all the obligations. This past weekend, your friend breaks her leg and is unable to work and you have.
