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
Major Differences Between a
Corporation and a Partnership
Structure
Startup Costs
Liability
Taxation
Management
Some other type of Structure
Trust
Joint Venture
Tenants in Common
NGO
Association
Next Topic - Business Law
Law of Contract
Law of Partnership
Sale of Goods
Principal & Agent
Arbitration
Negotiable Instruments
Company Law
Role of IPO