” and they have five of their friends working for them. While their business is booming

October 31st, 2019

Building upon your Module 1 SLP, suppose that your brother’s lemonade stand business has grown substantially. After signing the agreement with Peter, your brother’s lemonade has become so popular it is being sold at lemonade stands all over the neighborhood. Your brother has named himself “CEO” of the lemonade business, Peter has become his business partner and “Chief Operating Officer,” and they have five of their friends working for them. While their business is booming, they sometimes argue about the share of profits. You are also concerned that, now that their business is rapidly growing, they may face problems of potential lawsuits and liability, and you wish for your brother to come up with a formal legal structure for his business. Carefully review the background materials on business organization and tort law. Then, write a 2- to 3-page paper discussing what kind of legal structure your brother’s business should adopt and potential liability risks that he faces. Specific issues to be covered in this paper include: What kind of liability might your brother’s business face? Refer to the Pearson tutorial on business torts in your answer. (Link for background materials are attached with the e-mail). What kind of legal structure should your brother adopt for his business, and why? Will this structure you recommend reduce his liability? Refer to at least one of the required or optional readings from the background materials page to support your answer. (Link for background materials are attached with the e-mail).

Name of student

Course title

Tutor’s name

Date

Legal structures and liabilities

Abstract

Liability is referred to as financial obligations which occur in the proceedings of a business operation. Liability is also commonly known as the act of being responsible for particular aspects such as money or services that belong to another party. Settlement of the liabilities is usually in form of economic benefits. In most organizations, there are current liabilities which include debts that should be paid in a short period. Long term liabilities entail liabilities debts that are payable in a long duration of time. When liable persons do not take up their obligations there is occurrence business torts.

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