Beruflich Dokumente
Kultur Dokumente
Initiating Entrepreneurial
Ventures
Introduction to
Entrepreneurship,
Donald F. Kuratko
7
CHAPTER
Chapter 7
Legal Challenges to Entrepreneurial
Ventures
Chapter Objectives
1. To introduce the importance of legal issues to
entrepreneurs
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The Ongoing
Venture
Legal
Concepts
Growth and
Continuity of the
Venture
Chapter 7 Legal Challenges in Entrepreneurship Fall 2014
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1. Sole proprietorship
2. Partnership
3. Corporation
4. Franchise
C. Tax considerations
D. Capital formation
E. Liability questions
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Personnel Law
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Venture
A. Tax considerations
1. Federal, state, and local
2. Payroll
3. Incentives
B. Governmental regulations
1. Zoning (property)
2. Administrative agencies (regulatory)
3. Consumer law
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PATENT
A Patent provides the owners with exclusive
right to Hold, Transfer, and License the
Production and Sale of the Product or Process.
The objective of Patent is to provide the holder
with the temporary Monopoly on his or her
Innovation and thus to encourage the creation
and disclosure of New Ideas and Innovation in
the Marketplace.
Chapter 7 Legal Challenges in Entrepreneurship Fall 2014
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Securing a Patent
Rule 1: Pursue patents that are broad, are
Commercially Significant, and offer a
Strong Position.
Rule 2: Prepare a Patent Plan in detail.
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TRADE SECRETS
Trade Secret
79
lists
Strategic plans
Research and development
Pricing information
Marketing techniques
Production techniques
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proprietorship
Partnership
Corporation
Chapter 7 Legal Challenges in Entrepreneurship Fall 2014
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SOLE PROPRIETERSHIP
Sole Proprietorship
A
of formation
Sole
ownership of
profits
Decision
making and
control vested in one
owner
Flexibility
Relative
freedom from
governmental control
Disadvantages
Unlimited
liability
Lack
of continuity
Less
available capital
Relative
difficulty
obtaining long-term
financing
Relatively
limited
viewpoint and
experience
Freedom
from corporate
business taxes
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PARTNERSHIPS
Partnership
Articles of Partnership
Clearly
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Partnerships (contd)
Advantages
Ease of formation
Direct rewards
Growth and
performance facilitated
Disadvantages
Unlimited liability of at
least one partner
Lack of continuity
Relative difficulty
obtaining large sums
of capital
Flexibility
Difficulty of disposing
of partnership interest
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CORPORATIONS
Corporation
Forming a Corporation
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Corporations (contd)
Advantages
Disadvantages
Limited liability
Activity restrictions
Transfer of
ownership
Lack of
representation
Unlimited life
Regulation
Relative ease of
securing capital in
large amounts
Organizing expenses
Double taxation
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Limited Partnerships
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719
bankruptcy
limited partnership
Bankruptcy Act
liquidation
cancellation proceedings
partnership
claims
patent
cleaning-out procedure
copyright
corporation
debtor-in-possession
generic meaning
infringement budget
(LLLP)
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