Bus201 Week 1 Business Law Case Study

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Case Studies Shauna Senior South University Online Business Law II | BUS2038 S01 Week1 Assignment 3 Case Study 1 Professor: Cheryl Olsen September 22nd 2015   Case Study 1: Legal Studies Scenario 1 Sophia’s options if the Retirement Living partnership cannot pay the $50, 00 would be to go after the partner’s personal assets such as cars, homes and even their bank accounts. Sophia could also get the local Sheriff or courts, to assist her in garnishing personal wages if they have any. “Generally, the members of a partnership are exposed to unlimited liability for the acts of the partnership as a whole. This means that if the business as a whole becomes indebted and insolvent, the partners' personal assets might be exposed to cover the debts.” (smallbusiness.com). Sophia, will not win if she tries to collect the entire debt from Blanche as she is just one of the partners of three if it’s a general partnership then everything is equally shares including the profits and losses gained. Only if, the partnership is limited liability then yes she can go after Blanche for the entirety of the balance. “In limited partnerships (LPs), at least one of the owners is considered a "general" partner who makes business decisions and is personally liable for business debts” (Nolo.com) Blanches option if …show more content…

In this case perhaps McCoy would wish to be a limited partner and be removed from the day to day operations. An option he could choose could be to be a Limited Liability Corporation, may come with additional costs, work and headaches, but even so as we with any business it has its advantages, which includes the flexibility of who manages the business, can be easier to raise capital and add or transfer ownership interests. Owners are no longer liable for business debts, but the

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