Business Law Questions
1. Jim who recently quit his job after receiving a very large bonus payment is interested in forming his own business. He is not sure how to begin and he has
asked you to help him identify and analyze what company formation options he has available. He can set up his business in the UK, Canada or the USA,
he will go where you decide.
a. Please advise him on what it means to be unincorporated, the advantages and disadvantages
b. Then explain to him the significance of opening an incorporated business? What are the advantages and disadvantages of this type of business?
c. Then explain to him what is a Limited Liability Partnership? What responsibilities and liabilities do the partners have for themselves individually, to
the firm/to each other in the firm and to the public?
d. Explain to Jim if he needs additional capital to begin his new company what are some ways he could finance his new company?
2. 5 years later Jim has done very well but he is facing competition from 4 other similar businesses, he is considering the idea of merging with one of his
competitors or trying to acquire one of them.
a. Explain to Jim what a merger is. Then identify and explain the steps that he and the other party would need to take to merge together – remember
this will vary country to country.
b. Jim was able to convince Bob to merge their companies together, explain to Jim what three separate groups of professionals are recommended to
be consulted to assist him with this merger.
c. Explain to Jim and Bob what issues they will need to agree to when the two comes merge into one new company. For example, who will be the
3. (In case Jim cannot merge with someone) Jim soon realizes that none of his competitors want to merge with him but still facing stiff competition, so he
asks you to assist him in acquiring one of the competitors to give him a bigger advantage in the market.
a. Explain to Jim what is an acquisition and then explain to him the different ways he can acquire one of his competitor’s company.
b. Explain to Jim what the significance of him acquiring a competitor’s company would be in relations to control of the company, decision making,
4. If Jim cannot merge with a competitor is there the possibility of a Strategic Alliance or Joint Venture between the parties?
a. Explain what is a Strategic Alliance? What are the main characteristics of a strategic alliance and the advantages/disadvantages?
b. Explain what is a Joint Venture? What are the main characteristics of a joint venture and the advantages/disadvantages