Business Law

LAW 201

LECTURE # 2

Previous Lecture - Business Law

Introduction to Law Sources of LawDifferent Types of LawsConstitutionHistory of Constitution of PakistanCommonwealthIntroduction to Business LawTypes of Business

Ten myths about business ethics

Ethics in the workplace is about prioritizing moral value and ensuring that behaviors are aligned with those values

Ten Myths…….

1. Business ethics is more a matter of religion than management2. Our employees are ethical so we don’t need to pay attention to business ethics3. Business ethics is a discipline best led by philosophers, academics and theologians

Ten Myths …….

4. Business ethics is superfluous. It only asserts the obvious: ‘Do Good’5. Business ethics is a matter of the good guys preaching to the bad guys6. Business ethics is the new policeperson on the block7. Ethics can’t be managed

Ten Myths …….8. Business ethics and social responsibility is the same thing9. Our organization in not in trouble with the law, so we’re ethical10. Managing ethics in the workplace has little practical relevance

Types of Business

Sole ProprietorPartnershipCompany

Sole Proprietor

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts

Sole Proprietorship

The advantages of a sole proprietorship include:1. Owners can establish a sole proprietorship instantly, easily and inexpensively.2. Sole proprietorships carry little, if any, ongoing formalities.3. A sole proprietor need not pay some taxes on himself or herself 4. Owners may freely mix business or personal assets.

Sole ProprietorshipThe disadvantages of a sole proprietorship include:1. Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business.2. Owners cannot raise capital by selling an interest in the business.3. Sole proprietorships rarely survive the death or incapacity of their owners and so do not retain value

Partnership

A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations thereof

The Similarities and Difference Between Sole Proprietorship and Partnership

Full LiabilityTaxationReportingOwnership and Responsibility

Company

Companies utilize organization structure to create their business hierarchies. Each company determines the staffing levels that it needs to operate efficiently, and organization structures play an important role in this determination

Major Differences Between a Corporation and a Partnership

StructureStartup CostsLiabilityTaxationManagement

Some other type of Structure

TrustJoint VentureTenants in CommonNGOAssociation

Next Topic - Business Law

Law of ContractLaw of PartnershipSale of GoodsPrincipal & AgentArbitrationNegotiable InstrumentsCompany LawRole of IPO