Legal Structure of Business
For a McDonalds franchisee, there are three options. The franchise can be operated as a sole proprietorship, a partnership, or a corporation. The real issue is not that there are options, but which option should be chosen. It is not always possible to make that determination easily, since there are many factors that have to be considered in each choice. A sole proprietorship is operated by one person. That person is solely responsible for the business, and there is no complex legal structure. That person can reap all the profits and rewards, but he or she also shoulders all the liability for any lawsuits or other issues that might go wrong. In a partnership, the profits and the liabilities are shared between two people. There can be some adjustment as to which person is "more" responsible for specific issues, or it can be a completely 50-50 split of everything, both good and bad.
In a corporation, it is the corporation itself that gets the benefits and also shoulders the liabilities. The corporation then "pays" the people running that corporation. If the corporation is sued only the assets of the corporation can be taken, and the individuals are not going to lose their assets to creditors or to someone claiming negligence or another serious problem. McDonalds itself is a corporation, but the franchisees have a choice as to what they want to be. Which structure should they pick? That has to be up to each individual person who decides to open a franchise, but it would appear that the best and most logical choice would be for the franchisee to open his or her franchise under a corporation, and not under a sole proprietorship or partnership. The reason for that is that there is simply too much risk to the other options. On a personal level, sole proprietors and people in partnerships are dealing with a lot of serious risk that people who own corporations can avoid.
In the past, there have been several lawsuits against...
Legal Structure of McDonald's Corporation There are many different categories of business in the world today. McDonald's brand franchisees operate as part of a corporation. The company, comprised in part of restaurants run by independent entrepreneurs, is currently considered one of the worlds most successful and largest franchising companies every created. Seventy percent of McDonald's restaurants are owned and operated by independent owners. This corporate business structure has resulted in substantial opportunities
Legal Structure and Management of a National Level Sporting Organisation Sports activities in the world today are becoming more popular and are attracting huge crowd. This is one of the reasons that have made sponsors to come in so as to help such clubs that are not able to support themselves financially. Through sponsoring, the sponsor is able to market and advertise its products within the stadium where the club is
LEGAL ISSUE, STRUCTURE, and ANALYSIS A. LEGAL ISSUES-LIMITED PARTNERSHIP. According to Black's Law Dictionary (1991), a limited partnership is a "type of partnership of one or more general partners who manage business and who are personally liable for partnership debts, and one or more limited partners, who contribute capital and share in profits but who take no part in running business and incur no liability with respect to partnership obligations beyond contribution"
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Business Structures Corporation business structures Preference of Corporation Business Structure Over Other Known Structures In this paper, we will choose the corporation business structure as an ideal choice for the firm McDonalds in order to carry out its operations. We will define the merits which a multinational firm like McDonalds can take advantage of if because of this structure, also we will have an in-depth look on other structures such as sole proprietorship
Realistic, Hypothetical legal scenarios (Business Law for Accountants The foundations of Corporate Governance demand that organizational practice follow the legal requirements. In current times, news reviews of industry wrong doings have forged uncertainty on the bottom line that submission is definitely the widespread procedure. This short article examines the impact of law on organizational practice by evaluating the law's specifications with a real organizational practice within the marketplace, reviewing the case
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