Business Law and Liability Exposure

Imagine that you own each of the following businesses:

Tinker’s Home Security Service (sole proprietorship)
Tinker & Tailor’s Home Security Service (general partnership)
Tinker & Tailor’s Home Security Service (LP)
Tinker & Tailor’s Home Security Service, Inc. (corporation)
Tinker & Tailor’s Home Security Service, LLC (LLC)

The businesses are being sued for breach of contract. Create a matrix that lists each business, and compare and contrast your personal liability exposure as an owner as a result of the lawsuit.
For each business entity, analyze how you might limit your liability exposure as an owner.
Describe a business that you may own some day or that you currently own. (Even if you never plan to own a business, pretend as if you will do so for the purposes of this assignment.) Examine the best business organizational form for the business that you have described, including in your examination personal liability exposure, management, taxation, and ease of formation.

Submit a four- to five-page paper (not including title and reference pages). Your paper must be formatted according to APA style as outlined in the approved APA style guide and you must cite at least three scholarly sources in addition to the textbook

Answer preview

Business type and personal liability exposure

Tinker’s Home Security Service (sole proprietorship)

A sole proprietorship is an incorporated business. It is usually owned and run by the owner who is a single individual. There is no difference between the proprietor and the business unit. When the business unit breaches a contract, the owner is personally liable for the liabilities that come across. The supplier who has been wronged can sue the owner of the business thus holding the owner individually legally responsible for the breach of the contract. The business entity is vulnerable to risks in form of debt and lawsuits. The personal assets of the business organization are therefore vulnerable to a law suit. This comes from the fact that the business unit is not a separate legal entity (Spadaccini, 2010).

…………………

WORD COUNT:1475WORDS

FORMAT:APA