Purpose:

To develop an understanding of forms of small businesses and be able to conduct legal research to support business formation decisions.

Upon completing this assignment students will be able to:

• Describe the various agency relationships and the duties and liabilities of agents and principals as the foundation of partnerships and corporations.
• Define and use appropriate business and legal terminology.

Instructions:

You are serving as advisors to a client who would like to change his/her sole proprietorship small business to Corporation. He/she is unsure about the benefits of either business form. You need to explain to your client the benefit of changing the business form using one legal case as evidence of the legal protection either business form can offer.

You decide to write a short professional letter to explain the benefit of a Corporate business form. You intend to illustrate with one example of a legal case where it could have benefitted the business owner to be a corporation.

Using Chapter 21 of your textbook and conducting legal research prepare a well-written formal one page, single-spaced letter.

In drafting your letter, you will need to create a fictitious client you are advising.

Your letter does not require you to fully outline the legal cases you choose, but it should show some facts and findings of each of the case.

Be sure to include the following sections in your letter.

• Explanation of a Corporation and the benefits of the business form selected.
• Facts and findings of a legal case.
• Conclusion showing a strong recommendation for changing the business formation.