Business Law LAW 201 LECTURE 2 Previous Lecture

Business Law LAW 201 LECTURE # 2

Previous Lecture - Business Law Introduction to Law Sources of Law Different Types of Laws Constitution History of Constitution of Pakistan Commonwealth Introduction to Business Law Types of Business

Ten myths about business ethics Ethics in the workplace is about prioritizing moral value and ensuring that behaviors are aligned with those values

Ten Myths……. 1. Business ethics is more a matter of religion than management 2. Our employees are ethical so we don’t need to pay attention to business ethics 3. Business ethics is a discipline best led by philosophers, academics and theologians

Ten Myths ……. 4. Business ethics is superfluous. It only asserts the obvious: ‘Do Good’ 5. Business ethics is a matter of the good guys preaching to the bad guys 6. Business ethics is the new policeperson on the block 7. Ethics can’t be managed

Ten Myths ……. 8. Business ethics and social responsibility is the same thing 9. Our organization in not in trouble with the law, so we’re ethical 10. Managing ethics in the workplace has little practical relevance

Types of Business Sole Proprietor Partnership Company

Sole Proprietor The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts

Sole Proprietorship The advantages of a sole proprietorship include: 1. Owners can establish a sole proprietorship instantly, easily and inexpensively. 2. Sole proprietorships carry little, if any, ongoing formalities. 3. A sole proprietor need not pay some taxes on himself or herself 4. Owners may freely mix business or personal assets.

Sole Proprietorship The disadvantages of a sole proprietorship include: 1. Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business. 2. Owners cannot raise capital by selling an interest in the business. 3. Sole proprietorships rarely survive the death or incapacity of their owners and so do not retain value

Partnership A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interestbased organizations thereof

The Similarities and Difference Between Sole Proprietorship and Partnership Full Liability Taxation Reporting Ownership and Responsibility

Company Companies utilize organization structure to create their business hierarchies. Each company determines the staffing levels that it needs to operate efficiently, and organization structures play an important role in this determination