By John M.B. Balouziyeh
This quantity offers an summary of usa federal and country legislation governing enterprise companies. The chapters take the reader via a step by step exposition of the main simple sole proprietorships to the main advanced multi-tiered conglomerates. one of the enterprise enterprises handled are partnerships with their numerous modalities (general partnerships, restricted partnerships, restricted legal responsibility partnerships), organizations (including heavily held businesses, public companies and different adaptations) and restricted legal responsibility businesses.
The case legislation and statutes governing the total menu of commercial firms are systematically analyzed and offered. best instances at either the federal and kingdom point in addition to version laws comparable to the Uniform Partnership Act and enacted laws are extra tested.
Other issues coated contain employer and partnerships, Accounting, taxation and finance, Startup businesses and enterprise capital, Fiduciary tasks and shareholder keep watch over, Mergers and acquisitions.
Read or Download A Legal Guide to United States Business Organizations: The Law of Partnerships, Corporations, and Limited Liability Companies PDF
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Extra resources for A Legal Guide to United States Business Organizations: The Law of Partnerships, Corporations, and Limited Liability Companies
In a sense, corporations limit the liability of their directors by providing a “shield” that takes on the impact of legal judgments, protecting their directors from direct, personal liability. , computers, office buildings) may be seized and used to satisfy a judgment. In contrast, a partnership has no assets of its own and therefore, a partner may lose personal property in order to satisfy a legal judgment against the partnership. This is true even if the partner was acting within the scope of his employment when he made a business decision that caused the partnership the economic loss.
The plaintiff’s estate brought suit, alleging that it was entitled to recover one half of these judgments. The court held that, because the plaintiff already transferred all of her interest by quitclaim deed, she was not entitled to recover these judgments. 4 39 Binding the Partnership When the partnership agreement does not state otherwise, partners may bind the partnership by majority vote. When one partner acts against the other partner’s will, courts, when determining whether the partnership should be bound by the partner’s acts, will question whether he was acting within the scope of the business.
If the investment returns 14 %, he will earn $14,000 on his original investment. – If the loan had a 10 % interest rate, he would be required to pay $7,500 in interest. With this expense, his net gain would be $6,500, nearly twice as much as it would have been had he relied solely on equity. Thus, even with the added expense of interest, the investor would come out ahead through leveraging, earning $6,500 off of his original equity contribution of $25,000, a 26 % gain, rather than a mere 14 % gain of $3,500.