Disadvantages Of Corporate Law

| The partners are jointly and severally liable for business debts and obligations. The partners are held personally responsible for the business and may be sued personally for liability. Partners’ personal assets are subject to lawsuit(s) made against the business. Lack of continuity; death of a partner may end the partnership/business if a buy/sell agreement is not in place. Disagreements may be difficult to resolve.

All the partners can participate in the management of the business and can work for it

also can have risks; as the owner you cannot bring others into the business, so the

LONGEVITY/CONTINUITY – Most of the time, once a partner wishes to leave the business; it is

This business is a general partnership, meaning that both owners are responsible for management and the financial obligations of the business. Also, it’s easy to start, mainly due to the fact that each partner pays a minimal fee for the fees that are applied to new businesses. It’s easy to manage, due to many different ways each partner handles their responsibilities. There’s a lack

Study Objectives 1. Identify the characteristics of the partnership form of business organization. 2. Explain the accounting entries for the formation of a partnership. 3. Identify the bases for dividing net income or net loss. 4. Describe the form and content of partnership financial statements. 5. Explain the effects of the entries to record the liquidation of a partnership. *6. Explain the effects of the entries when a new partner is admitted. *7. Describe the effects of the entries when a partner withdraws from the firm.

A director has a duty to prevent a company from trading whilst insolvent. A company is insolvent if it cannot pay all its debts as and when they

I believe that corporate law is beneficial and affects society in a positive way. Corporate law encourages the transition from companies to corporations, which in turn stimulates the economy. When the economy is going strong and well, society as a whole is doing better. There are more people with jobs which give more people the ability to buy more items. That has the potential to raise the overall mood of the public and in turn makes society better.

Another advantage of the partnership entity is that it provides greater access to finance and management from the resources of both partners. As Section 24 of the Partnership Act states amongst its rules of the interests and duties of partners, “All partners are entitled to share equally in the capital and profits, and must contribute equally towards the losses”. Furthermore, the Act states that “Every partner may take part in the management of the partnership business”. Unlike in a sole proprietorship where capital remains limited, partners in a partnership are able to contribute their share in the business to increase capital volume and ultimately business activities. Therefore, the ability to pool resources from partners will, in particular, assist James who just graduated from university and may lack the sufficient funds needed to contribute towards a start-up business. A partnership is also considered a safe organisation for providing credit facilities due to the unlimited liability of partners. Sufficient funds in terms of credit can be procured from financial institutions

As the name suggests, this classification of manager based on the authority acts in the forefront. He/she manages the primary tasks or primary production activities of the company. They assign employees tasks, supervise them, ensure quality & quantity of the production, mediate employee problems to the top managers, check quality & h&le clients & customers.

Corporate Ethics: Principles and values that govern the decisions and actions of the business are called corporate or business ethics. These may be written or unwritten. The basic meaning of ethics is deciding between what is wrong or right (good or bad) and doing what is morally correct. It govers the behavior of each individual and the organization as a whole.

If partnership is made for specific term, then after the intention is attained partnership can breaks up.

If you look around, you must have noticed people in your relation and in your neighbourhood running business in partnership. You must have seen people quitting partnership firm or a person dies while in partnership. These are the events that take place during the lifetime of a partnership firm. Some issues arise on the happening of these events involving finance. Some assets and liabilities may need revaluation, goodwill is to be treated and amount of joint life policy is distributed and soon accounting adjustment are required to be made. Whenever such events take place, the firm has to calculate the dues of a partner leaving the firm or that of the

The General Manager should learn company’s problems in technological, financial, service field & develop strategic planning process to encounter them. He will also need to develop strategies and policies to achieve company’s future goals. He will also be responsible to organizes regular staff meetings and builds an environment in which employees willingly produce maximum work. He will need to develop annual operating budget as well as all project budgets and oversees them. He is also responsible for producing marketing & promotion content and implements it in a planned manner to reach different class of customers. General Manager is also responsible for developing sound relationships with stakeholders, funders and community in order to gain mutual benefits. He will also need to plans and assigns work to subordinates and monitors them time to time, as well as plan & review marketing activities, results and expectations with employees on regular basis. General Manager is also responsible for preparing financial report for effective management & clearly showing operational effectiveness by his efforts, as well as supports board of directors in formulating policies and projects and making policies recommendations. He also need to take part in reviewing insurance, banking, auditing and other board related aspects of the

Salomon is a shoe manufacturer. He runs his business as Sole Proprietorship with name “Salomon & Co Ltd.” After he married and had five children, he decided to register his business