Business Forms and Governance
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The legal form an entity or individual takes is a decision that must be considered from a risk and liability perspective, not simply one of ease of formation or cost. Form can impact the entities ability to grow and, in some circumstances, its ability to survive. As you consider this reality and approach this assignment, consider not only the form the business takes but also the way it will be governed. Remember the law requires business leaders conduct their business ethically and within the boundaries of the law.
Resources: Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues: Ch. 14, 15, 16 and 17; Week 2 Electronic Reserve Readings; Legal Source database located in the Week 2 Electronic Reserve Readings
Scenario: You are sole proprietor presenting to a group of investors where you are seeking 20 million dollars to raise capital for your manufacturing company.
Prepare a 10- to 15-slide Microsoft® PowerPoint® presentation for your potential investors including both parts:
Choose the one form of organization best suited for your manufacturing company and explain why:
- Limited Liability Partnership
- Limited Liability Company (including single member LLC)
- S Corporation
Outline for the investors which form of organization (from the list of six under the first bullet) would be the least suited and why?
Address the following for the investors regarding the corporate form of organization only (from the list of six under the first bullet):
- Summarize for investors what legal liabilities could arise for the Director or officer of that board?
- Explain how you could minimize those liabilities for the Director or officer of that board?
Cite a minimum of three scholarly references. One scholarly reference must be from the University Library.
Format your presentation consistent with APA Guidelines.
- Business Forms and Governance Grading Guide
- Legal Environment of Business, Ch. 14: Small Business, General Partnerships, and Limited Partnerships
- Legal Environment of Business, Ch. 15: Limited Liability Companies, Limited Liability Partnerships, and Special Forms of Business
- Legal Environment of Business, Ch. 16: Corporations and Corporate Governance
- Legal Environment of Business, Ch. 17: Investor Protection and E-Securities Transactions