Person DH was hunting deer standing on the strap which held him high on the tree. Person DH met with an accident as the strap failed that costed him his life. Company SBI has the main task of selling and making of the deer stand and person KK is the manager and sole member of the company. Person D and RH, the children of DH, filed a case in the state court against SBI and KK. They sought the recovery of the damages. KK filed a motion for summary judgment claiming that he was not liable for the death of DH. To find: The reason behind the allowance and encouragement of law that limits the liability of the owner and managers of a business organization for the action of the firm.

Question

How to develop a business? Use the following information as the basis for this activity: Business Legal Structure Kevane Grant Thornton LLP Limited Liability Company Toys “R” Us Private Corporation Facebook, Inc. Public Corporation Based on the information provided, write an essay in which you discuss how to build a business.Use the following guiding questions: What is the difference between these legal structures, in terms of the liability of their owners? If you were to open a business, which of the legal structures would you use and why? Explain your answer.

Answer 1

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Chapter 17, Problem 1CT

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Case summary: Person DH was hunting deer standing on the strap which held him high on the tree. Person DH met with an accident as the strap failed that costed him his life. Company SBI has the main task of selling and making of the deer stand and person KK is the manager and sole member of the company. Person D and RH, the children of DH, filed a case in the state court against SBI and KK. They sought the recovery of the damages. KK filed a motion for summary judgment claiming that he was not liable for the death of DH.

To find:The reason behind the allowance and encouragement of law that limits the liability of the owner and managers of a business organization for the action of the firm.

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