What is a sole proprietorship? A partnership? (essential elements) How is each entity taxed? What is a franchise? What is the "covenant of good faith and fair dealing? Dissociation and dissolution as they relate to partnerships? What is a partnership agreement? How does a sole proprietorship Business Law 210.5 – Exam 2 Study Guide Spring 2020 Page 2 come to an end? Elements of a general partnership? What are fiduciary duties as between/among partners? Good and bad reasons for forming, or not, a sole proprietorship and/or partnership? Who bears the liability in a sole proprietorship and partnership? What are the key elements in proving a partnership exists, or not?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?