Hnc Bus Law Outcome 3 Assessment

| 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.

There aren’t very many similarities between a sole trader and a PLC other than the fact that they both generate profit.

Corporate groups can be defined as a company structure where several companies are interconnected through contract shareholding or as Dine says, “By interlocking dictatorships.” In these structure holding companies usually have control and influence over subsidiaries. Limited liability on the other hand, is the logical consequence of the existence of a separate legal entity or generally, the concept simply means that since the company is different from the shareholders, the members are only liable for the amount unpaid or their shares and not for the debts of the company

Under the Partnership Act 1963 , each partner of a firm is liable jointly with the other partners of that firm for the debts incurred.

A public limited company can offer its share to the public on the stock market, they can raise money buy selling shares in the company on the stock market. All of the advantages and disadvantages are the same as the private limited company except for the

Partnership- the partnership established as a legal business entity a group of two or more persons goes in into a legal contract by which the partners agree to operate a business and share the profits from that business. There are limitations on the life span of a partnership; it ends with

2. Partnerships are set up by a Deed of Partnership which is a document made out by the partners and witnessed by a solicitor. This Deed sets out the legal relationship between partners e.g. how profits will be shared out, responsibilities of partners etc. In traditional partnerships the partners had unlimited liability i.e. they were jointly responsible for the debts of their partnership. In

A successful business is business that has good entrepreneurial skills which enables them to unite production to the complex matters of demand. It also encourages them to improve on what they produce such as the quality and how they produce the product to meet the demand in the future. For example Apple, not only did they improve on the software they use but also the quality of the phone. However a firm lacking in entrepreneurship skills would risk being forgotten if they fail to make the right assumption of the market conditions and also produce goods and services where there is less demand. Firms are distinguished by their form of ownership. There are three types of businesses; sole trader, partnership and limited companies (public and

General Partnership: is a business formed by one or more partners, who equally share profits and liabilities for the company. This type of partnership is created by agreement, estoppel, and proof of existence. The partners or owners are all personally liable for any debts and legal actions that the business may face. In a general partnership all partners have the ability to actively control or manage the partnership. Ultimately, each partners has “agency authority “on the partnership, which means that any partner can legally bind the partnership to a contract.

being a general partner, shall be held liable unlimitedly and jointly and severally with the general

A public limited company (members’ liability is limited to the unpaid share capital and at the time of incorporation a plc must have ab allotted share capital of 50,000.00 pounds)” (Rosenfalck).

joint and individual liability: Members have unlimited liability as they are liable for the debts of the business. In addition, personal assets of all partners can be used to satisfy the partner's debt.

Liability – In an ordinary partnership members are responsible for all debts accrued by the business and do not observe any protection should the business fail and as such limited companies hold an advantage in that the Company shareholders will only be liable for debt up to the value of their individual investment, this offers a degree of

Another characteristic that belongs to partnership is the division of profits or losses. It is not essential that all the partners must share the losses also. There may be a provision in the partnership deed that a particular partner or partners shall not bear losses. The profit is arrived at after providing for salaries to the partners and interest on capital, if agreed and stated in the agreement. That last but not least feature of partnership is about the business management. Firstly, it is specified that all general partners are entitled to act as legal representative of the partnership in carrying out business activities. Any restriction applicable to general partners in relation to conducting day-to-day business activities of the partnership will be effective to the third party if this party is informed. Secondly, general partners will agree on division of their duties in relation to management and running of the company. If a business activity is carried out by several partners, the decision will be adopted on the principle of majority. Additionally, the partnership will not be liable to any activity that is conducted by general partner and outside the scope of business activities of the partnership, unless otherwise agreed by the partners. Thirdly, the partnership can open one or several accounts with a bank. The partners’ council will appoint one partner who is required to deposit and withdraw money from those accounts. Lastly,

* Partnership – Partnership Act (Ontario) defines partnership as a relationship that subsists between two or more persons carrying on business in common with a view to profit.