Executive Briefing of Factors & Issues Associated with Business Entities

• Overview

  Write a 3–page executive briefing of potential factors and issues associated with four types of business entities in the context of U.S. contract law.

• One of the most common ways in which business managers are involved with business law is in relation to contracts. Organizations of almost any size will most likely need to create, negotiate, review, approve, adhere to, and resolve conflicts associated with contracts. A business determines its legal standing by determining what type of legal entity it should be identified as. The type of legal entity can significantly impact how contracts are handled, as well as how they are interpreted by the courts.

• Resources

  SUGGESTED RESOURCES

  • Analyzing a Case Law | Transcript.
    • Throughout this course, you will be required to submit case law analysis papers. This multimedia presentation points out key areas of a case law. Use this presentation to help you complete your case analyses. Refer to this media as often as you need to.
  • Business Law Foundational Concepts |Transcript.
    • This media piece offers interactive flashcards that you can use to learn (or review) foundational terms and concepts in business law. Refer to this study aid often and as needed.
  • DuBoff, L. D. (2004). The law (in plain English) for small business. Naperville, IL: Sphinx Publishing.

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  Internet Resources

  • Nolo. (2013). Nolo law for all. Retrieved from http://www.nolo.com
    • This resource provides helpful background on a range of legal issues. You may find the Free Legal Information section of the site particularly helpful.

• Assessment Instructions

  For this assessment, consider that you work as a manager in a relatively small, privately-owned U.S. business. The company president (who is also the owner) inherited the company from his father, and thus has never started a business. He is considering creating a spin-off business (possibly with one or two associates), but is unsure of which type of business entity would be best to use for that new business. The new business will be utilizing numerous suppliers and distributors, and thus contracts will play a major role in the success of the business. The president knows you took a university-level business law class, and asked you to put together a paper analyzing the four most common business entities in the context of contracts to help him decide what to do.

Business Entity Implications for Contracts

• Research each of the following types of business entities:
  • Sole proprietorship.
  • Partnership.
  • Corporation.
  • Limited liability company (LLC).

  Consider potential factors and issues associated with each of these types of business entities in the context of contract law. Write a paper analyzing the following for each of the above four types of business entities:

  • Who in the business entity would typically create and negotiate a contract? Explain the pros and cons of each entity in this context.
  • Who in the business entity would typically approve and sign a contract? Explain the pros and cons of each entity in this context.
  • Who in the business entity would have liability associated with the contract? Explain the pros and cons of each entity in this context.
  • What are the effects of the type of business entity on the ability to contract for the sale of the business? Explain the pros and cons of each entity in this context.

  Based on your executive audience, your executive briefing should be no more than three pages, and should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

• Business Entity Implications for Contracts Scoring Guide

  CRITERIA				DISTINGUISHED
  Analyze contract creation and negotiation for the most common types of business entities.				Analyzes contract creation and negotiation for the most common types of business entities and explains the pros and cons of each entity in this context.
  Analyze contract approval for the most common types of business entities.				Analyzes contract approval for the most common types of business entities and explains the pros and cons of each entity in this context.
  Analyze contract liability for the most common types of business entities.				Analyzes contract liability for the most common types of business entities and explains the pros and cons of each entity in this context.
  Analyze how choosing among the most common types of business entities affects the ability to sell a business.				Analyzes how choosing among the most common types of business entities affects the ability to sell a business, and explains the pros and cons of each entity in this context.