1. 31.1 Law for Business, 15e by Ashcroft Chapter 31: Introduction to Business Organizations Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

2. 31.2 Chapter 31 Objectives  Discuss the differences in setting up a sole proprietorship, a partnership, and a corporation.  Explain the most important disadvantages of sole proprietorships and partnerships.  Give two reasons why the corporate form of business organization is important.

3. 31.3 Partnerships Partnerships must:  Be two or more people.  Operate the business lawfully for a profit.

4. 31.4 Types of Partners  General, or ordinary, partnerships place no limitations upon a partner’s rights, duties, or liabilities.  Limited partners are liable up to the amount of their investment.  Trading partnerships buy and sell merchandise. Non-trading partnerships provide services.

5. 31.5 Kinds of Partners  Describe each of the following types of limited partnerships:  Silent  Secret  Dormant  Nominal  What are some advantages of a partnership? Some disadvantages?  What is the difference between a joint- stock company and a joint venture? Activity

6. 31.6 Corporations  A corporation exists because of law, not just individuals who want it.  A corporation may operate for profit or not-for-profit, but must be for legal purposes.  Corporations allow for the following:  Pooling of capital from many investors.  Limited liability.

7. 31.7 Do you understand this chapter? Make sure you do before going on to Chapter 32.