Examining a Business Failure

In conclusion, all businesses exist to make profit, with little risks. Owners of a business have a personal obligation to pay the company's debt, such as in the case sole proprietorship. A creditor can pursue the personal assets of sole proprietorship owner. The owner of a sole proprietorship can lose his or home, car and any other personal assets until all outstanding debts are paid. Limited liability company owners are protected from personal liabilities and have the tax advantages of partnerships. Personal creditors of LLC members cannot pursue the business interest of LLC members in an attempt to recover personal obligations. Strategic Alliance are formed to achieve designated objective, to satisfy customers needs, reduce risks, share costs and combine technologies to make profit. In terms of asset protection, formation and liabilities, Limited Liability Company is better because it can raise funds quicker than the otThe law presumes that the parties to a contract have the requisite contractual capacity to enter into the contract (Chessman, 2010, p. 193). Certain persons do not have this contractual capacity, including minors, insane persons, and intoxicated persons. Many state statutes protect persons who lack contractual capacity from having contracts forced on them. The party enforcing incapacity bears the burden of proof. A minor is a person who has not reached the age of majority. The age of majority as specified by many states is 18 years of age for both males and females, but the common law defines minors as females under the age 18, and males under the age of 21. Minors as defined do not always have the capacity to enter into contract because they lack maturity, experience, and capabilities needed to enter into contract with adults. Most states allow unmarried persons under the age of eighteen (18) to enter into any contract an adult can, provided the contract is not prohibited by law for minors, such as agreement to purchase cigarettes or alcohol, however contracts entered into by minors are voidable by the minor by disaffirmance. Contracts must be lawful. Any illegal contract is not binding by law. Illegal contracts are voided. A contract is illegal if it involves doing something that is a criminal act or a civil wrong, or against the public good. It is an offence to sell firearm to a person not licensed to hold one, so a contract to sell a firearm in these circumstances is illegal. A contract whose purpose is to get the party to it to break another legally binding contract that the party has made already is also illegal. Any contracts whose objective is considered immoral by society, such as a contract based on sexual favors, are void. Necessaries of life as applied to minors are clear by the law. Minors are obligated to pay for the necessaries of life that they contracted, because many adults will refuse to sell these items to them, although the parents owe a legal duty to provide food, clothing, shelter, and other necessaries