When you have completed this topic you will be able to accomplish the following:
• Describe the characteristics of a sole proprietorship, general partnership, limited partnership, limited liability company, sub-chapter S corporation, and C corporation
• Differentiate between a sole proprietorship, general partnership, limited partnership, limited liability company, sub-chapter S corporation, and C corporation as an appropriate form of business organization in a given business situation
• Explain the key characteristics of partnerships
• Describe the duties and responsibilities of corporate officers and directors
• Describe how a corporate entity may be terminated
Just look at the news today and you will see that the importance of understanding business legal issues is at the forefront of the country's concerns over the financial crisis. Who is liable for the collapse of Bear Stearns? Can those receiving executive bonuses be sued? What is the validity of employment contracts when a company goes bankrupt? Those are just some of the legal questions currently being debated. This is your opportunity to develop not only your understanding of these legal concepts, but also your competence in applying these principles to a variety of business settings, including your employment experience.
Your study of business forms of organization includes resources from the Internet, SkillSoft and SkillPort, the message boards. Be sure to utilize each of these resources as they provide a broad range of viewpoints on the topics you will need to master in order to pass the performance assessment.
Business Organizations
Read the following chapter in The Legal and Ethical Environment of Business:
• chapter 11 ("Business Organizations")
After reading the chapter, answer the questions stated in the "Exercise" box at the end of each section.
Distinguishing Between Business Form
Read the following chapter from a book about business insurance:
• "Forms of Business Organization"
This chapter provides a straightforward and meaningful discussion on the ten different forms of businesses that are found in the United States. Begin your study on page 4.
After reading the information, you should be able to answer the questions below about the following forms of business ownership:
1. sole proprietorship
2. general partnership
3. limited
