Professor Tsang
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 difficulties. Andy had recently inherited a lot of money and Bob and Chris asked him to lend the business $100,000 to enable them to buy sufficient stock for the summer season. Andy wanted to help his friends but also wanted to ensure that he would get his money back. He agreed to lend Bob and Chris the money in return for a payment of $10,000 per year out of the gross returns of the shop.
(a) Discuss whether or not a partnership exists between Andy, Chris and Bob.
(b)
Would it make any difference if the terms of the loan provided for Andy to be paid $10,000 per year out of the profits of the business and he was to be consulted on any business decisions involving liability of $5,000 or more?
Explain your answer in terms of the Partnership Act.
2
1.
The Corporations Act 2001 addresses issues relating to the national regulation of companies in Australia. What were the main problems of earlier schemes?
2.
Ryan is an ambitious amateur theatrical director who sees a future in commercial promotion of small-scale amateur dramatic productions. The actors will be paid a small fee but there is a profit to the promoters. In case the show is successful there is the chance of an extended season, country tours or even
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 difficulties. Andy had recently inherited a lot of money and Bob and Chris asked him to lend the business $100,000 to enable them to buy sufficient stock for the summer season. Andy wanted to help his friends but also wanted to ensure that he would get his money back. He agreed to lend Bob and Chris the money in return for a payment of $10,000 per year out of the gross returns of the shop.
(a) Discuss whether or not a partnership exists between Andy, Chris and Bob.
(b)
Would it make any difference if the terms of the loan provided for Andy to be paid $10,000 per year out of the profits of the business and he was to be consulted on any business decisions involving liability of $5,000 or more?
Explain your answer in terms of the Partnership Act.
2
1.
The Corporations Act 2001 addresses issues relating to the national regulation of companies in Australia. What were the main problems of earlier schemes?
2.
Ryan is an ambitious amateur theatrical director who sees a future in commercial promotion of small-scale amateur dramatic productions. The actors will be paid a small fee but there is a profit to the promoters. In case the show is successful there is the chance of an extended season, country tours or even