Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Contract, Apparent Authority, Reasonable Person
Document Summary
If (cid:28660) (cid:28661)(cid:28680)(cid:28678)(cid:28668)(cid:28673)(cid:28664)(cid:28678)(cid:28678) (cid:28664)(cid:28683)(cid:28668)(cid:28678)(cid:28679)(cid:28678), (cid:28668)(cid:28679)"(cid:28678) (cid:28674)(cid:28677)(cid:28666)(cid:28660)(cid:28673)(cid:28668)(cid:28685)(cid:28664)(cid:28663) (cid:28668)(cid:28673) (cid:28679)(cid:28667)(cid:28664) (cid:28665)(cid:28674)(cid:28671)(cid:28671)(cid:28674)(cid:28682)(cid:28668)(cid:28673)(cid:28666) (cid:28679)(cid:28667)(cid:28677)(cid:28664)(cid:28664) (cid:28682)(cid:28660)(cid:28684)(cid:28678)(cid:28621) What about franchises, licenses, distributorships, joint ventures etc. If you want to know the right or obligations of the party, look at the contract. These three forms of business organization have legal obligations just because of what they are. At the beginning, there were only sole proprietorships. Then, people decided to do business together. Eventually, when the need for capital grew significantly, and the projects being under taken were enormous, partn(cid:28664)(cid:28677)(cid:28678)(cid:28667)(cid:28668)(cid:28675)(cid:28678) (cid:28682)(cid:28664)(cid:28677)(cid:28664)(cid:28673)"(cid:28679) (cid:28664)(cid:28665)(cid:28665)(cid:28664)(cid:28662)(cid:28679)(cid:28668)(cid:28681)(cid:28664) (cid:28664)(cid:28673)(cid:28674)(cid:28680)(cid:28666)(cid:28667) (cid:28660)(cid:28673)(cid:28684)(cid:28672)(cid:28674)(cid:28677)(cid:28664) (cid:28646)(cid:28674)(cid:28671)(cid:28664) (cid:28675)(cid:28677)(cid:28674)(cid:28675)(cid:28677)(cid:28668)(cid:28664)(cid:28679)(cid:28674)(cid:28677)(cid:28678)(cid:28667)(cid:28668)(cid:28675)(cid:28678) (cid:28660)(cid:28673)(cid:28663) (cid:28675)(cid:28660)(cid:28677)(cid:28679)(cid:28673)(cid:28664)(cid:28677)(cid:28678)(cid:28667)(cid:28668)(cid:28675)(cid:28678) (cid:28660)(cid:28677)(cid:28664)(cid:28673)"(cid:28679) separate legal entities. People in the business are personally liable. Corporations are legal entities (a person), (cid:28660)(cid:28673)(cid:28663) (cid:28679)(cid:28667)(cid:28664)(cid:28684)"(cid:28677)(cid:28664) separate from the people who own and operate it. Therefore, people who invest in the corporation are not responsible for the debt of the corporation. That allowed businesses to grow and expand substantially.