Firms exist to minimize costs and, as a result, profit maximization is achieved. There are three general ways of categorizing firms: sole proprietorship, partnership and corporation. These forms differ with respect to their constitution and the extent of their liability to creditors.Know More
According to Barry Haworth from the Department of Economics at the University of Louisville, a sole proprietorship is a firm where the owner directly operates it and has unlimited liability. Partnerships are formed when two or more individuals come together to start a firm, and this firm has unlimited liability, meaning the extent to pay a firm's debts exceeds the investments of the owner's personal assets. Corporations are run by appointed managers and are owned by a group of investors who in turn have limited liability, meaning the investors cannot be held personally accountable for debts unless they signed a personal guarantee.
Problems that arise for all types of firms include switching costs related to the internal commitment of resources focused on specific tasks, monitoring costs that safeguard against opportunistic behavior by securing a return on the investment into the firm and information costs geared toward obtaining costly information for developing contingencies in an effort to adapt to future problems.Learn more about Law
Andrew Lavoot Bluestone; Cronin and Cronin Law Firm, PLLC; Andrews Kurth, LLP; and Davidow, Davidow, Siegel and Stern, LLP are top New York City law firms that specialize in one area, according to U.S. News and World Report. Craco and Ellsworth, LLP; Danker, Millstein and Ruffo, P.C.; Arnold and Porter, LLP; and Allen and Overy, LLP are top firms that practice law in more than one area.Full Answer >
Law firms and attorneys can provide hard copy power-of-attorney forms, or these forms can be downloaded and printed from law-related websites such as Law Depot or Rocket Lawyer. Law Depot and other sites allow users to customize the forms to conform to the regulations of the state they live in.Full Answer >
A conflict check is a method used by law firms to ensure that conflicts of interest do not exist between the firm's existing clients and a potential new client. Lawyers should establish an effective conflict checking system and regularly maintain and update the information it contains.Full Answer >
Complaints against law firms should be filed with the agency that issues licenses to practice law in that state, says the American Bar Association, which maintains a state-by-state list of such agencies on its website. Typically, valid complaints are handled by the disciplinary board of a state's Supreme Court.Full Answer >