ABSTRACT
Founder-entrepreneurs must know fundamental business law although they are not attorneys. This chapter introduces some of the basic law concepts all entrepreneurs must know to stay out of legal trouble. Corporations conduct their business activities under their "true" legal name —that is, the name that identifies a company for legal, administrative, and other official purposes. Business law dictates how to form, run, buy, manage, sell, or close any type of business. The chapter discusses the most important laws that impact the business community concerning trade industry and commerce. It reviews the legal terminology associated with various types of entities and provides an overview of the various forms of business organizations and highlights the potential advantages and disadvantages for business. The greatest downside to the simplicity of a sole proprietorship is the unlimited financial and legal exposure of the owner. The level of management structure depends on the size and purpose of the limited partnership.
