Law Wk 1 Posts

Read pages 310-326 of Legal Environment of Business.

Consider the following as you read:

* As you think about the forms a business can take, consider as you read this chapter the balance of factors you need to take into account as you form that business; to decide solely based on cost or ease of formation, or personal liability or legal restrictions is dangerous. All of these factors, and others, need to be taken into account.

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* Comment on Apr 22, 2017, 3:54 PM

Describe the process of forming a general and limited partnership. What are the liabilities that the general and limited partners are subject to?

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* Comment on Apr 25, 2017, 3:18 PM

Good evening Class,

A general partnership is”an association of two or more persons to carry on as co-owners of a business for profit”(Cheeseman, 2016). Forming a general partnership requires two or more people to invest in a business and a third party is involved with debts and liabilities owed by the partners within the general partnership. There are four steps that a general partnership must meet to be formed. “It must be (1) an association of two or more persons (2) carrying on a business (3) as co-owners (4) for profit”(Cheeseman, 2016). The general partnership does not have to be formal to meet with each other. A limited partnership is “a type of partnership that has two types of partners: (1) general partners and (2) limited partners”(Cheeseman, 2016). A limited partnership must be formed with a general partner. A certificate of limited partnership must be created to solidify the limited partnership. “The entity must comply with the statutory requirements of the RULPA or other state statutes”(Cheeseman, 2016). The liabilities that general partnerships are subject to are: unlimited personal liability, joint and several liability and the liability of incoming partners. Limited partnerships “have limited liability for the debts and obligations of the limited partnership”(Cheeseman, 2016).

Reference: Cheeseman, Henry (2016). Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues (8th ed.). Upper Saddle River, NJ: Pearson Education, Inc.

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