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- Explain 3 legal forms a business could take and state 1 advantage and 1 disadvantage eachMr. B’s business is not registered as a One-Person Corporation (OPC); it is thus a single proprietorship. Unable to pay his construction materials supplier, the latter wishes to go after said entrepreneur's vehicles at home. Here, can said obligation of the business be paid-off through Mr. B's other assets? Briefly reason-out.What are the characteristics of the Quasi-Corporation? Describe 3 types of Quasi Corporations.
- T F An agreement between two franchisors in whichthe two franchisors offer their products togetheris called double franchising.1. Suppose competitor firms in an industry gathered and shared certain data about costs. Under the Sherman Act, such action would likely be: a. per se illegal b. an illegal conspiracy under a rule of reason c. permissible if all information was made public d. permissible unless it could be shown that a market injury occurred .1. Which of the following is an advantage of partnerships? a. Each partner has limited liability for the debts of a business. b. Each partner is responsible only for his or her acts. c. A business continues to exist even after the death of any one partner. d. More capital can be raised since good credit may be available. 2. Which of the following factors should be considered while choosing the proper legal form for a business? a. Packaging of the product b. Location of the factory c. Nature of the business d. Name of the product 3. Once the choice of a legal form for a new business has been made, it cannot be changed until the business is dissolved or sold. a. True b. False 4. An equal partnership between owners is advisable in order to facilitate decision-making. a. True b. False 5. Which of the following is an advantage of a corporation? a. It cannot make use of a business owner's personal property…
- 45) What is a disadvantage of partnerships over sole proprietorships? A. In partnerships, profits have to be shared, whereas in sole proprietorships all profits belong exclusively to the owner. B. Unlike sole proprietorships, partnerships do not face any regulatory controls that affect their activities. C. In partnerships, all owners have unlimited liability, whereas in sole proprietorships they have limited liability. D. Unlike a sole proprietorship, a partnership is terminated when a partner dies or withdraws. E. In sole proprietorships, the owners have access to more funds than in partnerships.Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?SECTION B Read the following extract and then answer the question belowTwo business entities come to you for assistance and they would like enter into a stock agreement supply. The other is a manufacturer and one is a retailer. It is their fist time to be committing to such a huge business arrangement and they both realise that it is important to do it right because as much as it looks like a great business deal, should it fail to work, it can lead to serious business losses that can even lead to liquidation and litigation. All they ask for is to be advised on the essentials of a valid business contract, and the need to explain conditions for compensating parties for breach of contract. In doing that, it is important to quote relevant authorities. Evaluate how the two enterprises need to be assisted.
- Evelyn, Francis and George, run a business buying and selling wigs. They have been advised by their lawyer to form a private limited company to run the business. They have contacted you for a second opinion, particularly in respect of:1.The extent to which they will have the same right to be involved in the management of the private limited company; 2.Thepublic disclosure to which the business would be subjected to as a private limited company. Having discussed these aspects with specific reference to the Companies Act, 2019 (Act 992), advise them of the choice they should make between the two alternatives, or any other options available to them.1. The concepts of the appointment, duties of directors as well as to whom these duties are owed together with the effects and procedure for mergers and acquisition as well as the raising of capital and winding up by companies have been subject to a long-standing debate in the country and beyond. Whereas some believe that a reformation in the Law is the only way out, others are of the opinion that these are issues that would die out with the passage of time and should therefore be left as it is. As a member of the society for black business administration students you have been invited to attend the 35th international conference on law reform with a slot to present a position paper on the subject. Cease the opportunity to clarify the position of the law in respect of the above using statutes and caselaw as your main point of reference5. David runs a t-shirt business. He is producing t-shirts with a print of a well known cartoon character on them. He pays the creators of the cartoon a fee of £1 for every t-shirt sold containing an image of the character. What most accurately describes this arrangement? A Franchise B Partnership C Licensing D Joint Venture
