Professor Tsang Essay

4206 Words Oct 30th, 2012 17 Pages
BUSL301 - TUTORIAL QUESTIONS
1
(1)

Why would you choose to run a business as a partnership?

(2).

A and B are in partnership as accountants. Without B’s knowledge, A, in the name of the partnership, entered the following transactions, although he had no express authority to do so:
(i)
(ii)

purchased new office stationery and equipment for the firm. purchased shares to the value of $15,000 in the partnership name in an exploration company soon to be floated on the ASX.

(a)
(b)

Discuss the liability of the partnership.
Can B be personally liable for either of the transactions?

(3)
Andy, Bob and Chris were old school friends. Bob and Chris were running a surf shop together. The business was having financial
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Indri becomes desperate and works even harder. While working late into the night, Indri badly lacerates his hand and needs micro-surgery.
His efforts to keep the business afloat are in vain and the company is forced into liquidation. On realization of the assets, it is found that the company has approximately $95,000 to go towards meeting creditors’ claims of $210,000:
(i) If Indri is the only secured creditor, will he get his $90,000 back?
(ii)

Can Indri claim workers’ compensation, assuming that he is otherwise entitled to it?

3
(1)

What is the relationship between the decision in Crabtree-Vickers Pty Ltd v
Australian Direct Mail Advertising and Addressing Co. Pty Ltd (1975) 133 CLR 72 and s.129(3) of the Corporations Act.

(2)

X is the promoter of X Pty Ltd, a company to which X proposes to sell some land for high-rise development. (Assume the present zoning of this land does not permit such development). What would you advise X to do, and why?

(3)

Ryan signs a lease for a theatre to be used by Astor Theatre Group Pty Ltd, a company that has not yet been registered. How can the company be bound (and have rights) under such a lease? Can Ryan avoid personal liability if the lease with the company doesn’t proceed?

(4)

Alan and Bill are the only shareholders and directors of Sailaway Pty Ltd (Sailaway) which distributes and