LAW 122 Lecture Notes - Lecture 4: Limited Liability Partnership, Limited Liability, General Partnership
27 Oct 2018
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Describe a set of facts (i. e. create a fact pattern) where you believe that it would make more sense for two people to set up a business as a corporation rather than a partnership. Please explain why you believe that a corporation makes more sense based on such facts. In terms of creating a fact pattern, while the facts you create are completely up to you, you would want to identify issues where there are risks that are best managed through a corporation. Operationally then, it may be simpler to start doing business as a partnership. Similarly, for example, when discussing corporations, you could then discuss the following: corporations are separate legal persons from their shareholders. As such, liabilities incurred by the business are incurred by the corporation rather than the shareholders. As the two principals are entering into a high risk.
