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University of Nevada Las Vegas Business Law Questions

I need help with a Business Law question. All explanations and answers will be used to help me learn.

You can answer them briefly but accurate.

1. XYZ Company is a U.S firm that makes communication software used in a variety of consumer goods manufactured and sold in the United States. XYZ recently learned that one of the manufacturing firms in supplies, ABC Company, is exporting finished goods to a country where U.S. goods and component parts are prohibited because of numerous conflicts with the U.S. government.

  • Does XYZ have any moral or legal responsibility in this case?
  • How should XYZ protect itself under these circumstances?
  • Should American business practices be impacted by conflicts between governments?

2. Hello-Hello is a U.S. telecommunications company with global operations. Sophia is an assistant vice president of Hello-Hello. She is dispatched to China to handle two situations. First, a shipment of 500 cases of cell phones is stalled in customs. She is assigned the task of getting the goods out of customs and into retail stores. Sophia learns through the grapevine that customs officials expect $5 (U.S.) per case to help “speed things along.” Second, she is instructed by her boss to do “whatever is necessary” to secure cell tower permits from local officials in two outlying areas. A local agent suggests that she give him $500,000 in cash so they can get to know the officials better. When Sophia asks him what the money will be used for, he tells her that he wants to take them out to dinner, maybe on a weekend outing in the city, and that he generally needs “flexibility.”

– Should Sophia call the home office to ask for advice?

– If her boss says to pay the money, should she do it?

– What potential legal problems are presented by the payment?

3. Forms of Business Organizations

(a) What are the three traditional business organizations and the four hybrid forms?

4. Sole proprietorships

What are the limitations of the sole proprietorship?

5. Partnerships

Terry is the senior partner in an accounting firm. One of Terry’s partners performs an audit. The audited firm sues Terry, as the senior partner, for alleged errors in the audit. If Terry is found liable, can Terry sue to collect a pro rata share of this liability from the other partners? Why? Or why not?

6. Corporations

(a) Who controls the closely held corporation? Explain.

(b) Describe five techniques that a corporation might use to avoid the double taxation of corporate profits.

7. Limited Partnerships

Laura and Gary have formed a limited partnership, with Gary agreeing to be the general partner. This partnership has purchased supplies from Sam. Sam has received a promissory note signed on behalf of the partnership as payment. If the partnership is unable to pay this note, can Sam hold Gary personally liable? Explain.

8. S corporations

(a) Although it is technically a corporation, the S corporation has the attributes of which business organization when considering the taxation factor?

(b) What is the implication of this treatment if the S corporation has a profitable year but does not distribute dividends to its shareholders?

9. Limited Liability Organizations

What is the advantage of this organizational from compared to the S corporation?

10. Terminology

(a) What are the names given to the three parties typically involved in an agency relationship?

(b) Describe the general purpose of the agency relationship.



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