BUS 260 Study Guide - Midterm Guide: Blue Sky Law, Vicarious Liability, Limited Liability Company
21 Nov 2013
School
Department
Course
Professor
Document Summary
On the job: company should have to pay because employee was on the job. Frolic: employee was not on the job, employer not liable. Apparent authority: if an employer puts an employee in a position that has apparent authority (to customers), the employer has vicarious liability. Holding out: if you hold out to be something, you must accept the liability that comes with it. Sole proprietorship: owner & business are one and the same. Partnership: general partnership: each partner has equal power/ownership of company. Partnership agreement: not required to form partnership, but highly recommended. Not a separate entity- divide income among partners- individual tax return. Regular corporation: have to go to state government to get a state charter- to the minute accuracy of when corporation was formed. Go to irs and get tax id number. Corporate income tax because corporation is a separate entity from stockholders. Ethical: limited liability: otherwise people won"t go into business- for the greater good.
