BUSI 2601 Lecture Notes - Lecture 2: Private Law, Labour Law, Sole Proprietorship
23 Jan 2018
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Lecture 2: the relationship between law and business. Business enterprise: sole proprietorship (sp, partnership, corporation. Identity: a collective aspect of characteristics by which a thing is recognized or known, we need a constant, law needs to give a thing a personality. An agent however must act within the scope of authority. Financial creditors: banks and loan providers, if a business defaults on its loan, the financial creditor suffers, these are secured creditors - where the debts are registered, equipment can also be seen as secured creditors. Employees: they have day to day involvement in the business, personal interest in success or failure. Trade creditors: people who supply things/service to businesses, they are usually unsecured, although they may have security over the equipment. Public: both the consumer and the entity that absorbs risks if there is a failure in settling payments, the owner/manager takes more risk than employees, in a sp/partnership personal financial well-being is tied to the business.
