The franchisor will probably place significant

This preview shows page 2 - 4 out of 10 pages.

The franchisor will probably place significant controls on the business. 7. Lucas and Avery want to start a business together selling custom bicycles. They took their
business plan to the bank and secured a loan for $25,000 to get started. However, they are still concerned about having to pay too much in taxes and about the personal liability that they might incur in the business. Given this information, which of the following would be the best type of business for Lucas and Avery to open? 8. American Builders Inc. and Weston Properties Inc. formed a joint venture to build a
subdivision of 50 homes. During the construction, a tree was being cut down fell onto a neighboring home doing property damage to the home and causing physical injuries to the owner who was in the kitchen at the time and was hit by several limbs. The home owner bought suits against both American Builders and Weston Properties. Who will be liable? 9. Austin has been operating a small brewery for several years and sells them directly to
local bars and restaurants. His beverages have become so popular that he would like two more breweries in the state but isn’t sure he has the time to run all three facilities. His friends tell Austin that he should check into franchising but Austin wants to be sure that the beer is brewed exactly by his recipe and sent directly to the local restaurants and bars. What type of franchise would Austin’s breweries be? 10. Max is trying to convince his brother Joey to go into business with him to open a retail
store that sells golf equipment. Joey thinks his brother has a good idea but doesn’t want to quit his job to start this business nor the idea of being personally liable if his brother is unsuccessful. Joey does have $30,000 that he is willing to invest in the business in exchange for a percent of the profits. What type of business agreement would be best for Max and Joey?
Analyze: Legal Reasoning 40.1 1. One issue before the court in Smith & Edwards v. Golden Spike Little League case was:
2. One issue before the court in the Girl Scouts of Manitou v. GSUSA case was:
Prepare: Chapter 41 Review 1. In determining the rights of partner a specific partner within given partnership, the most important reference point is:
2. Persons who are in a partnership are called _____________ partners. 3. A partnership exists only if:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture