Business Law Paper: Effectively “Argue” Your Position On The Subject

Business Law
Student’s Name
Institutional Affiliation.
Business Law.
Introduction.
Business law addresses almost all aspects of a business, from formation to dealing with legal issues that arise in the course of operation (Cross & Miller, Unit1: The Foundations, 2016, p. 2). Regulations in the current business world are growing. More than ever, the entities might find themselves on the wrong side of the law. At every point of a business undertaking, management takes a center stage. Hence, legal issues that may affect the day to day operations of a company are attributed to the role of management. There is a rising concern on the capability of managers to establish a business environment that upholds legal provisions. Exploring these concerns dictates in-depth analysis of the crucial role that the management plays in the application and upholding of the business law. There are various forms of business. The liability of the directorate is determined by the legal form that a business understands. Managers ought to develop a broad sense of the law right from business formation to the execution of business undertakings as discussed in this paper.
Legal Issues to Consider in Business Formation.
Several startup businesses are emerging in today's business environment. Entrepreneurs are often equipped with ideas on how to conduct business and make profit. However, they tend to ignore legal considerations that should shape their decisions and further actions. Typically, most businesses begin as sole proprietorships. At this stage, there is less of legality to follow. Hence, sole-proprietors choose not to invest focus on the legal aspects of the environment, for instance, hiring a legal team or a lawyer. As the business prospers, the sole-proprietor form of business proves to be limiting, hence the urgency to consider another form of business like a partnership or company type develops. The legal scope of the new entity widens. The decision that precedes assuming a given form of business should concentrate on the legal duty that the management will bear.
A partnership form of business is an agreement between two or more parties to undertake profit making tasks. The contractual nature of partnerships tends to raise legal battle that may result in premature termination of the relationship. Legal conflicts that face a partnership include the primary determination if a business is usually a partnership. Some forms of partnerships are implied and not necessarily expressed in writing. Courts determine the legality of partnership by examining three conditions. The first condition is the sharing of profits and losses by partners. The partnership should also be jointly owned. Parties to the partnership should also bear equal rights to engage in the management of a partnership (Cross & Miller, Unit 4: The Business and Employment Environment, 2016, p. 355).
The dissolution of many partnership businesses is attributed to the failure of the involved parties to honor their duties. The general assumption is that actions of one partner bind every partner to a partnership. The duty of care plays a significant part in the health existence of partnerships. A partner is held liable under the duty of care if actions exhibit negligence, intentional misconduct or violating the law willingly. The duty of loyalty is also essential to the management of a partnership. The duty of loyalty protects the partnership from competition staged by parties to the partnership (Cross & Miller, Unit 4: The Business and Employment Environment, 2016, p. 358). Above are some of the considerations one should focus on before settling for a partnership. One should also develop a deep understanding of situations that may lead to the dissolution of the partnership.
Startup business may decide to assume a company formation. Companies are the most regulated form of business. Hence, management should realize the possible challenges that may arise due to high levels of regularity. Limited companies bear limited liability. On that, legal issues that may arise due to the operations of the company will not pass liability to the management team. This is one of the primary reasons why this form of business appears attractive to businesses.
The management of a Limited Liability Company is unique. An LLC firm can either be members managed or manager managed. Members-management entails participation of all members. Decisions are reached through majority vote. Manager-management is a form of administration that involves group appointed individuals. In either form of management, members of the administ...