DOC PREVIEW
UA LGS 200 - Final Exam Study Guide
Type Study Guide
Pages 3

This preview shows page 1 out of 3 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 3 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 3 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

LGS 200Final Exam Study GuideLGS 200 Final Exam Study Guide Chapter 16 Sole Proprietorship (page 392) = the owner is the business- Advantages  proprietor receives all of the profits, easier and less costly to start up due to less legal formalities, more flexibility, etc.- Disadvantages  the proprietor alone bears the burden of any losses or liabilities incurred by the business enterprise (unlimited liability, legal responsibility), when owner dies, so does the business, opportunity to raise capital is limited to personal funds, etc. Franchise = an arrangement in which the owner of a trademark, trade name, or copyright licenses othersto use the trademark, trade name, or copyright in the selling of goods or services- Franchisee = purchaser of franchise- Franchisor = seller of franchise- A franchise can operate as in independent businessperson but still obtain the advantages of a regional or national organization - Types:o Distributorshipo Chain-Style Business Operationo Manufacturing or Processing-Plant ArrangementPartnership = arises from an agreement, express or implied, between two or more persons to carry on a business for a profit (joint control over its operation, joint management, and right to share profits)- Partnership agreement = any terms the parties wishChapter 17LLC (page 417) = articles of organization must be filed with a central state agency (own part of business)- Advantages  liability of members is limited to amount of their investments, flexibility with the LLC offers in regard to business operations and management, two or more members can choose to be taxed either as a partnership or a corporation, etc.- Disadvantages  state LLC statutes are not yet uniform, lack of case law dealing with LLC’s, etc.- Operating Agreement = contain provisions relating to management, how profits will be divided, the transfer of member interests, whether the LLC will be dissolved on the death or departure ofa member, etc.Chapter 18Corporations (page 430):- Domestic, Foreign, and Alien- Public and Private- Non-profit (ex: churches)- Close Corporations = one whose shares are held by members of a family or by relatively few persons- You own stock (of the business) = evidence of owndershipIncorporation Procedures:- Articles of Incorporation = include basic information about the corporation and serve as a primary source of authority for its future organization and business functionsRole of Directors (page 440):- Election of Directors:o Initial Board of Directorso Term of Officeo Removal of Directorso Vacancies on the Board of Directors - Board of Directors Meetings:o Quorum  minimum number of members of a body of officials or other group that mustbe present in order for business to be validly transacted- Rights of Directors:o Participation and Inspectiono Completion and Indemnification - Responsibilities:o Duty of Care  good faith, being a good person (right vs. wrong; good will/conscious) o Duty of Loyalty  competing with corporation, taking personal advantage of a corporateopportunity, having an interest that conflicts with the interest of the corporation, engaging in insider trading (not public), authorizing a corporate transaction that is detrimental to minority shareholders, and selling control over the corporation o Conflicts of Interest  disclosure of any conflicts of interestDuty of Majority Shareholders (page 451):- A majority shareholder is regarded as having a fiduciary duty to the corporation and to the minority shareholderso This occurs when a single shareholder owns a sufficient number of shares to exercise actual control over the corporation (majority owes a duty to minority)Chapter 19Agency (page 460):- Employer and employee relationships- Agents = all employees who deal with third partieso Example: salesperson in a department store is an agent of the store’s owner and act’s onthe owner’s behalf - Agent’s Duties to the Principal:o Performanceo Notificationo Loyalty o Obedienceo Accounting - Principal’s Duties to the Agent:o Compensation (paid for work performed)o Reimbursement and Indemnification (cover personal expenses for the company) Keeping receipts for purchases made by companyo Cooperationo Safe Working Conditions - To terminate a relationship = have it in writing! (page 481)Chapter 20Employment-at-Will = either party may terminate an employment contract at any time and for any reason, unless the contract specifically provides the contrary - Exceptions:o Contract Theoryo Tort Theoryo Public PolicyEmployee Privacy Rights (page 497):- Electronic Monitoring in the WorkplaceEmail, computer files, voicemail, video recordings,


View Full Document

UA LGS 200 - Final Exam Study Guide

Type: Study Guide
Pages: 3
Documents in this Course
Load more
Download Final Exam Study Guide
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Final Exam Study Guide and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Final Exam Study Guide 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?