Case Study : Hospitality Consulting & Services ' Compliance Management

| In a sole proprietorship, the business and single owner are one in the same. A single owner makes all decisions with regard to the business and the single owner retains all profits earned by the business. The single owner is also responsible/liable for all debts and obligations of the business on a personal level.

1.1 Summarise key aspects of legislation, regulatory requirements and codes of practice relating to own role and responsibilities

Sole trader is where a business is run as an individual; so that all profits are their own after tax has been paid on them. Within a sole trader organisation it is possible to employ staff, as the sole trader only means that you own the business personally and do not actually have to work by yourself.

Failure to comply with these requirements can have serious consequences – for both organisations and individuals. Sanctions include fines, imprisonment and disqualification.

There are a plethora of compliance and regulatory requirements in this area but I want to focus on the finance and insurance office and how I can communicate to my colleagues and customers what these requirements are. Why must be met and taken seriously, and how we are going to do it?

• Liability: The owner has unlimited liability. When the business fails it is up to the owner to pay all the creditors off.

A sole proprietorship is a form of business that is owned by a single individual.  • Liability – Due to the lack of legal distinction between the owner and the business, the owner is fully responsible and liable for all debts that the business incurs in the same manner that an individual is fully responsible and liable for all debts that they incur. There is no legal distinction between the assets of the owner of the sole proprietorship and the business; this means that creditors have the ability to come after the owner’s business and personal material assets.   Income Taxes – Since the business is the same as the owner of the sole proprietorship, all profits or losses from the business are filed by the

1. The main legal requirements that need to be considered, including Codes of Practice, explain the impact that these have on the organisation.

CONDUCT AN ANALYSIS OF THE OPERATIONS AND BUSINESS ARRANGEMENTS OF THE ORGANISATION AND IDENTIFY THE FUNCTIONS, PRODUCTS AND SERVICES THAT MAY BE SUBJECT TO COMPLIANCE REQUIREMENTS

Compliance is everyone's responsibility. Each employee is expected to be aware of the regulatory requirements and what they must do to achieve compliance in the context of their roles. This can be achieved through effective training.

“Liabilities are debts: money you owe. Every business carries some liabilities—for example, ongoing payments to suppliers, rent for your office, compensation to employees, or fees for contractors” (Mancuso, 2014). Added liabilities may result if a business is ravaged by a fire or flood or if the business owner(s) become the victim of a lawsuit—for example, a patron, client or customer decides to sue your company after hurting themselves on company property. It is the intent of this paper to examine the role and responsibility of liability in different types of businesses from sole proprietorships to

In contrast, this essay argues, compliance issues are of an external nature. That is, the conflict is not between team members but with a third party (e.g. ASIC). As noted by Schweller, the emergence

This section will assess your understanding of the importance of meeting organisational and legal requirements.

Boundless individual risk. Since there is no lawful division in the middle of you and your business, you can be held actually obligated for the obligations and commitments of the business. Difficult to raise cash. Sole proprietors frequently face challenges when attempting to raise cash. [In this

In a word “Compliance” in its Literal sense. We must maintain the trust of our customers, business partners, investors, local communities, employees and other stakeholders, and build solid relationships through compliance.