Bus Law - Entrepreneurship Set 1law

law

meant to protect consumers from businesses being greedy, regulates businesses and promotes fairness

what are some legal issues impacting business?

minimum wage, employment (must follow laws), government agencies regulating business, taxes, advertising laws, OSHA (health and safety), Anti-trust laws

trademark

distinguishes brand (ex. logo)

copyright

used for art (ex. music)

patent

protects inventions

service mark

logo for a service company

tort

wrongdoing against another person (duty, breach of duty, causation, injury)

negligent tort

careless (ex. slip and fall)

intentional tort

ex. assault

strict liability

ex. defective products (without proof of direct fault of one person)

legally binding contracts

offer, acceptance, consideration

what is a business’s greatest asset?

employees

what does HR do?

protect employee rights and the business

Hiring regulations

ex. Americans with Disabilities Act, Age Discrimination in employment

workplace regulations

ex. Sarbanes-Oxley Act - help protect investors from fraudulent financial reporting by corporations

salary and benefits regulations

fair labor standards act

work safety measures regulations

OSHA (health and safety)

ALL states must follow these three things in hiring

• equal opportunity

• affirmative action

• sexual harassment

sole proprietorship (pros and cons)

operated by 1 individual, no distinction between business and the owner, simplified tax preparation but there is unlimited personal liability

General Partnership

profit, liability, and management divided equally among partners

LLC or limited partnerships

allows partners to have limited liability (proportional to state in company), share profits how they see fit, limited life span (if one person leaves its over), tax efficiencies

joint ventures

general partnerships for a short period of time

corporation

independent legal entity, owners separate from the shareholders, limited liability, corporate tax treatment, stocks, complex, DOUBLE taxation

cooperative

elected board directors run the cooperative, members can join by buying shares, each holder gets one vote (democratic), perpetual existence (does not matter if someone leaves or joins)

payroll tax

part of income is withheld, ex. medicare, social security

value added tax

tax collected at each stage of production of a good

what is a small business?

less than 500 employees

private enterprise

company owners operate independently from government control, owned by private investors, shareholders, and owners

public sector

owned by government, small business association

what effects a business’s profit?

cost of goods sold, salaries, insurance, rent (expenses), employees, taxes/regulations, economy, competition

business risks

consumer preferences, costs of inputs and resources, level of competition, economic climate, government regulations, size of business

direct competition

products that perform the same function compete against each other

indirect competition

products are close substitutes

budget competition

competition over what consumers spend their money on

what are some taxes businesses have to pay?

profit, capital gains, dividends, property tax, social security, medicare, unemployment, income, excise taxes

what type of economy is the US?

mixed

indirect taxes

increases price of a good

excise taxes

tax on every sale of a good or service (ex. gas or pollution)

do larger or smaller businesses have greater economies of scale?

larger businesses, can buy larger quantities for cheaper

external economies of scale

location, government, industry, given preferential treatment by outside factors

internal economies of scale

specific to management and internal workings

what are some ways to handle personalities?

avoid confrontation, find middle ground, highlight strengths of each employee, build foundation of trust

how to sell ideas?

keep simple, do not memorize a presentation, data is clear and concise, know audience characteristics, establish credibility

negotiation

have many alternatives, listen to what other is saying

what are some benefits of team building?

communication skills, teamwork, gives employees a break and eliminates personal barriers

corporate values

guides the perspective of an organization

stakeholder

person, group, or organization that has interest or concern in a business

how to form strategic relationships?

determine goals, identify relationships, research, consider what you can offer

best practice

method or technique that consistently shows superior results