The document discusses various types of business organizations and international laws governing business. It describes sole proprietorships, partnerships (general and limited), corporations, and subchapter S corporations. It also discusses international organizations like the UN, EU, NAFTA, ASEAN, and WTO that create legal principles for global trade. International law governs relationships between countries while private international law addresses business dealings between parties from different nations.

1. BUSINESS ORGANIZATIONS

4. SOLE PROPRIETOR
It is the
least
expensive
and easiest
to create.

5. SOLE PROPRIETOR
There is
only one
owner.

6. SOLE PROPRIETOR
Do you need the
government’s
permission to
open the
business?

7. SOLE PROPRIETOR
May need
a license
or permit.

8. SOLE PROPRIETOR
Can Joe Roberts
just open his bar under
the name of Tyler’s
Sports Bar and Grill?

9. SOLE PROPRIETOR
Need to file
a fictitious name
registration if you
want to open a
business in a name
other than your own.

11. Can’t use a
fictitious name
that is
misleading

12. SOLE PROPRIETOR
This form has the
greatest liability
because the
debts of the
business belong
to the owner.

13. SOLE PROPRIETOR
You can reduce the risk
by keeping all of your
personal assets in
joint names with a
spouse and by buying
liability insurance.

15. PARTNERSHIP
When two or
more people
operate a business
as co-
owners, they have
created a
partnership.

16. PARTNERSHIP
How do the
partners share
in the profits
and losses?

17. PARTNERSHIP
They will share
in the profits and
losses equally
unless there is an
agreement to the
contrary.

18. PARTNERSHIP
• Agreement between two
or more people
• Can be oral, written or
by implication
• Partner’s are responsible
for debts
• Cost is minimal
• Articles of Partnership

19. PARTNERSHIP
If Joe Roberts
opens the bar with
another person and
nothing is said
about the type of
business entity to
be used, what
happens?

20. PARTNERSHIP
A partnership
arises by
implication
because there
are two owners.

22. PARTNERSHIP
Generally, each
partner has an
equal right to
participate in the
management of
the business.

23. PARTNERSHIP
This right can
be altered by the
agreement whereby
one of the partners
can have a greater
say.

25. PARTNERSHIP
Each
has unlimited
liability for the
debts of the
business.

26. PARTNERSHIP
What
rights does
a creditor
have?

27. PARTNERSHIP
Creditor must
first go after
the partnership assets
and then they can go
after the partner's
assets.

28. PARTNERSHIP
Can the
creditor go
after just one
partner for
the debt?

29. PARTNERSHIP
The debts are
joint and several.
This means that
the creditor can
go after one
person.

31. PARTNERSHIP
A change in
the partners
terminates the
partnership.

32. PARTNERSHIP
Termination
is a two-step
process:
dissolution and
winding up.

33. PARTNERSHIP
A dissolution
is when a partner
ceases to be
associated with
the venture.

34. PARTNERSHIP
A winding up
involves the
collecting of the
assets and
distribution of
the assets.

36. LIMITED PARTNERSHIP
A limited partnerships
consist of one or more
general partners and
one or more limited
partners.

37. LIMITED PARTNERSHIP
This form of business is
generally used to raise revenue
since the liability of the limited
partners is limited to the
persons’ investment as long as
they have no say in the
operation of the business.

38. LIMITED PARTNERSHIP
Must file a Certificate
of Limited Partnership
with the state which
certificate must state that
the business is a limited
partnership.

40. LIMITED PARTNERSHIP
The business must be
run by the general
partners without the
active participation of
the limited partners.

42. LIMITED PARTNERSHIP
The liability of the
limited partner is
restricted to the
investment but the
general partners have
unlimited liability.

44. LIMITED PARTNERSHIP
A limited partnership
is dissolved the same
way as a general
partnership.
However, the death of a
limited partner does not
dissolve the business.

47. LIMITED LIABILTY PARTNERSHIP
Business
uses the initials
“LLP”

48. LIMITED LIABILTY PARTNERSHIP
This is a hybrid
between a partnership and
corporation. It is used by
professionals like lawyers
and doctors to avoid
personal liability.

49. What are the
legal
requirements?

50. LIMITED LIABILTY PARTNERSHIP
It must be registered
with the state as an LLP
and the business must file
a certificate of annual
registration each year.

51. LIMITED LIABILTY PARTNERSHIP
The partners are
not personally liable
for the malpractice
claims against the
other partners.

53. CORPORATION
It is a separate
entity created
by state
charter.

54. CORPORATION
• Owners get stock in
the corporation
• Owners liability is
usually limited to the
value of the stock.

56. CORPORATION
A corporation is a
separate entity so its
status does not change
with the death or sale
of stock by a
shareholder.

57. Think of Macy’s
Department Store. A
stockholder may die but
the business goes on.

58. CORPORATION
• Shareholders elect the
board of directors
• Directors set policy and
appoint officers
• Officers run business ona
daily basis

60. CORPORATION
• Owners liability is usually
limited to capital
contribution
• Owner can be liable if he or she
guarantees corporate debt
• Pierce corporate veil
• Owners always liable for
payroll taxes of coproation

61. Can the officers of a
corporation ever be
personally liable for
the actions of the
business?

62. CORPORATION
Officers may be
liable for the
criminal acts
of the corporation.

64. CORPORATION
Can you say
double
taxation?

65. CORPORATION
Business and
shareholders both
pay taxes.

66. Is there anyway
of getting around
double taxation?

67. Let me introduce
you to the world of
the Subchapter S
corporation.

68. SUBCHAPTER S
Profits and losses
go on the personal
tax returns of the
stockholders and
not on the
corporate return

69. CHAPTER TWELVE
International Law

71. Can you just do
business in another
country?

72. There are all sorts of hoops a company
has to jump through if
they want to do business in another
country.

73. Exporting is a
privilege
and the company
needs a license.

74. INTERNATIONAL LAW
Governs the
relationships among
countries.

77. Public International Law
examines relationships
among nations and
uses rules, treaties and
conventions that are
binding on all countries

79. TREATIES
Determines rules under
which world traders can
conduct business activities
within each other’s
territories.

80. TREATY

82. BILATERAL
Agreement
between
two nations

83. MULTILATERAL
Agreement
between more
than two nations.

85. Private International
Law looks at the laws
applicable to private
parties in their business
affairs when they
are from different
nations.

86. Private International
Law tries to solve
these types of
problems through
trade practices.

87. There are
international
norms created by
commercial entities
that are applied by the
merchants to
their transactions.

88. Many customs
have been supplemented
by the active participation
of the government
in establishing
international legal
norms.

89. For instance, Congress has
signed a number of laws
for international trade
and treaties have been
enacted that incorporate
general international
legal principles into
U.S. law.

90. The Foreign Sovereign
Immunities Act reinforced
the immunity of foreign
governments in the
U.S. courts but not
when engaged in
commercial activities.

92. These are organizations
and business entities
that play a role in creating
international legal
principles and rules
that govern the
community of nations.

93. Can you think of any
such organizations?

95. Where is
the real power
in the United
Nations?

97. Security Council
•Fifteen countries
•Five permanent members
•Each has veto power
over the General
Assembly

98. Can you
name the permanent
members of
the Security
Council?

99. COUNTRIES
• United States
• Russia
• United Kingdom
• France
• China
• Assembly elects other 10

101. Let me give you a clue.
Twenty-seven nations
from the same geographic
area have joined together
for political and economic
purposes.

105. EUROPEAN UNION
TODAY, THE EU HAS
ITS OWN LEGISLATIVE,
JUDICIAL AND
EXECUTIVE BRANCHES

107. Can you think of
any other
countries who have
come together in
an alliance?

108. North American Free Trade Agreement

109. NAFTA
is made up of
Canada, the United
States and Mexico.

110. These countries are
not a common
union but merely
a trade alliance.

111. NAFTA
Eliminates import
and export tariffs
between member
countries.

114. ASEAN
Created to
stimulate economic
growth in Southeast
Asia.

115. It has created a
free trade area and
has eliminated tariffs and
non-tariff barriers among
it is member countries.

117. WTO
•Decides disputes among
member countries
•Can impose sanctions
if member country
does not abide by the
rules

118. WTO
It establishes broad rules
for the trade of good and
services and provides
sweeping reductions in
trade barriers among
member nations.

119. 141 countries belong
and its headquarters
are in
Geneva, Switzerland.