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Business Law

Business Law

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Legal Tip of The Week

If you don’t know the difference between a tablecloth and a spreadsheet, you’ll definitely want to enlist some professional help. However, even if you’re planning to eventually hire a business consultant to write your plan for you, you should still try to write a rough draft on you own. The first step in doing so is to familiarize yourself with the basics by reading through these typical components of a hypothetical business plan

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Read other important articles from this law-area to find what you need to know. If you have a legal issue, we’ll help! WORLDLawDirect. Legal help 24 hours a day!

FAQ

What happens when a business goes into bankruptcy?

There are two types of corporate bankruptcy proceedings: Chapter 7 and Chapter 11. Under Chapter 7 proceedings, a business’s or individual’s assets are liquidated to pay outstanding debts. Under Chapter 11 proceedings, a corporation’s debts are restructured, and the corporation is allowed to continue in business.

How are bankruptcy proceedings started?

A debtor can voluntarily enter into bankruptcy proceedings, or proceedings can be initiated by the creditors. Proceedings that are initiated by the creditors are referred to as “involuntary bankruptcy.”

Why does it matter in which state a corporation is established?

A corporation is seen as a resident of its state of incorporation, and that state’s corporate laws govern the corporation. Delaware is a popular state for incorporation because its corporate laws are especially well-developed and its courts well-versed in corporate law.
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