The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Question
Chapter 16, Problem 2BS
Summary Introduction
Case summary: Person M, person P, and person V want to enter into a franchise arrangement. According to them, it would help in upliftment of business and they would get support of experienced companies.
To find: Person M, person P, and person V should consider the positive and negative aspects of franchising before committing themselves to a particular franchise.
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Chapter 16 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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Similar questions
- Write a letter advising a hypothetical sole proprietor to choose another form of business ownership. By definition, a sole proprietorship is an unincorporated business owned by one person known as the sole proprietor. The majority of U.S. businesses are owned and operated as sole proprietorships. In a persuasive paper, write a letter to a hypothetical sole proprietor explaining why he or she should convert the sole proprietorship to another form of business ownership (for example, a traditional "C" corporation, an "S" corporation, or a limited liability company).arrow_forward1. Explain the all the forms of and the advantages and disadvantages of each form of business. Define each form of business, sole proprietor, partnership, LLC, LP, and Corp. Next for each form of business explain the advantage and disadvantage of that particular form of business, comparing that form to the other types discussed. 2. Explain which form you would want to use for your business. o Explain why.arrow_forwardTwo companies, ABC and XYZ were incorporated in year 2020 as public (ABC Ltd. Co.) and private (XYZ Pvt. Ltd Co.) company respectively. Give a brief description of privileges enjoyed and restrictions imposed on these companies. If you wish to start any business what type of company you would choose to incorporate. Explain the reason behind your decision.arrow_forward
- Partnerships and most LLCs are known as pass-through entities. What does this mean for their partners (in the case of partnerships) and members (in the case of LLCs)? a. The businesses themselves are not subject to income tax; the individual partners/members pay income tax on their share of the businesses’ profits b. Partners and members are subject to double taxationarrow_forwardTRUE OR FALSE A Sole Proprietorship has the advantage of least government regulations.arrow_forwardRazor, Inc. tyros , Inc two automobile companies merged reducing the number of corporations competing within the automobile industry this merger is an example of a ? A)vertical merger B)leveraged buyout C)shark repellant merger D)a sole proprietorship E)a limited partnershiparrow_forward
- In which of the following business ownership types, entrepreneurs have the benefit by having more investors and a greater range of knowledge and skills. a. Partnership b. Limited Liability Company c. Sole proprietorship O d. Corporationsarrow_forwardThe Smith family has a very successful family tea shop that also provides wireless Internet access and live entertainment. They believe that there is a great deal of growth opportunity in such tea shops and plan to eventually expand. After meeting with their lawyers and accountants, they realize they need to change their business structure to either a corporation or a limited liability company. They understand that both have limited personal liability. Using the information in your text regarding the advantages and disadvantages of each, make a recommendation as to which you would recommend to the Smiths. Provide at least three reasons for your recommendation. Be prepared to defend your point of view.arrow_forwardThe Smith family has a very successful family tea shop that also provides wireless Internet access and live entertainment. They believe that there is a great deal of growth opportunity in such tea shops and plan to eventually expand. After meeting with their lawyers and accountants, they realize they need to change their business structure to either a corporation or a limited liability company. They understand that both have limited personal liability. Using the information in your text regarding the advantages and disadvantages of each, make a recommendation as to which you would recommend to the Smiths. Provide at least three reasons for your recommendation. Be prepared to defend your point of view. I recommend that the Smiths form a ________________. corporation limited-liability company The rationale for your recommendation is as follows: (Explain your 3 reasons )arrow_forward
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