Introduction to business law, Business Law and Ethics

Part A

Approach a small business owner and find out the following:

a. What is the legal structure of their business?

- Discretionary trust legal structure for an Accounting firm.

b. Why did they choose that business structure?

-  The Tax benefits mainly

c.  What factors did they consider before making the choice?

- Tax factors, legal considerations, protection against personal/family assets

d. What, in their opinion, are the legal risks involved in the type of business carried on?

- There are concerns that the business could be sued for negligence

e. What legal precautions did they put in place to protect their business and themselves against liability?

- Professional indemnity insurance - protection against being sued

- Company policies (Auditing firm): asking for letters of comfort from clients, not creating any assumptions in finishing the job; must have all the information.

- The way the Discretionary Trust is set-up, protects against personal assets if the firm is sued.

- Being in a Discretionary Trust also gives protection for the entity.

Part B

Analyse the information gathered under Part A as follows:

a. Identify legal principles studied in class that are applicable to the information gathered. 

b. What other legal precautions/protection do you think the business owner should put in place?

Posted Date: 2/26/2013 2:31:10 AM | Location : United States







Related Discussions:- Introduction to business law, Assignment Help, Ask Question on Introduction to business law, Get Answer, Expert's Help, Introduction to business law Discussions

Write discussion on Introduction to business law
Your posts are moderated
Related Questions
Termination of Arbitral Proceeding Although the Arbitral proceedings may be terminated in any of the giving ways as; Through the final award of the arbitrator Whether

Counter - offer and Death - Termination of an Offer Counter - offer However a counter - offer is constituted through the offeree's qualified acceptance that in itself g

QUESTION (a) What do you understand by the term misconduct in employment law. How does the English definition of misconduct differs from the French definition of misconduct?

Restatement of the fundamental rule: In Bray v Ford Lord Herschell stated that the aforesaid rule is not "founded upon principles of morality" but is based on the consideratio

I am an executive being transferred from my home city on the west coast to one in the Midwest. I know nothing about the city I'm moving to, but I have to buy a house there. Realtor

Q. What do you mean by Garnishee Orders? The ATO has the power to issue garnishee orders which allow recovery of debts from a person's bank account, wage or from people who owe

Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract stating, among other things, an exculpatory clause that FC

Contracts of Guarantee However a contract of guarantee or suretyship is such a contract through one person to answer that for the debt, such default or miscarriage of another.

Unique Vespa Couriers Pty Ltd ('UVC') is a courier company operating in the Melbourne metropolitan area.  Where most courier companies used bicycle couriers, UVC used vespas.  They

What is the meaning of Pareto inefficient outcomes Policy coordination is, therefore, designed to avoid Pareto inefficient outcomes. In absence of a supranational authority tha