Charlie and Lucy are partners in a book shipping company. Charlie dies. Charlie�s widow calls
Lucy and says, �As Charlie�s heir, I am entitled to take Charlie�s place as your partner.� Lucy states,
�No, you are not.� The widow states, �ok, then as Charlie�s heir, I am entitled to all of the books in
the warehouse.� Lucy states, �No, you are not. All you are entitled to is the value of Charlie�s interest
in the partnership property.
Who is correct, Lucy or the widow? Support your answer with material from the readings and/or the
applicable law.
Discussion Question Part II
Create a new business that you would like to operate. Would you select an LLC, an LLP, or a corporation
to form your company? Provide a detailed explanation as to why that entity would be appropriate for you.
Support your choice with the applicable law and/or text materials. Search for information related to doing
business in your state (Alabama) and provide the requirements for the option you selected, as applicable.
BUSINESS 2
Part 1:
According to the conversation between Lucy and Charles widow, the former is right. As a
good partner, Lucy is not supposed to misinterpret the fact that relates to her duty. Despite being
obedient to the agreements laid between her and Charles, she should not sympathize with the
former’s widow to the extent of doing her more favors such as entitling her to all books. Legally,
partners are restricted to four rights; books inspection, profit and capital share, and right to
management of affairs within the film (Parthemer, 2015). Lucy’s decision is also in line with
legal and ethical issues such as integrity and trust. She has responded to this issue amicably by
demonstrating honesty. Lucy indicated the rightful right that should be titled to the widow. She
has also addressed decision-making issue; she got the facts regarding the widow’s entitlement.
Part 2:
I would create a bakery business that prepare and supply fresh bread and cakes to the
Alabama market. Corporation would be selected to form the company. Besides having unlimited
liabilities unlike LLC and LLP, corporations are certified by the law. Furthermore, formation of
a partnership is easy and affordable. Generally, corporations can be created by one, two or more
BUSINESS 3
people (Asmussen and Foss, 2014). Corporation is also a best entity for my business due to its
other outstanding qualities. As the firm’s owner I would experience limited liability for the
enterprise and its debts. Corporations also allows a firm to pool resources of various investors,
promoting the growth of the firm (Chekwa, Martin and Wells, 2015). It also elongates the firm’s
life. For example, upon the death of any shareholder, the ownership can be transferred through
the sale.
References
Asmussen, C. G., & Foss, N. J. (2014). Competitive Advantage and the Existence of the
Multinational Corporation: Earlier Research and the Role of Frictions. Global Strategy
Journal, 4(1), 49-54.
Chekwa, E., Martin, J., & Wells, K. (2015). Riding on the waves of sustained competitive
advantage: Consumers’ perspectives on Walmart Corporation. International Journal of the
Academic Business World, 9(1), 61-73.
Parthemer, M. R. (2015). Family Limited Partnerships, Limited Liability Corporations, and
Section 2704 Regulations–Watch Out for This Potential Blockbuster! Journal of
Financial Service Professionals, 69(6), 27-29.
