can include associations with employees‚ agents‚ lenders (such as a bank) and trade creditors. This chapter looks at the structure of the sole proprietorship‚ its formation‚ legal status‚ name registration requirements‚ funding‚ management‚ and dissolution. It also briefly notes why one might want to use this form of business association to carry on a business. II. STRUCTURE Objectives: Closed Book Be able to: (i) Briefly describe the legal structure of the sole proprietorship. (ii) Explain the
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liable for its debts since the business is a separate legal entity. 16. Although not required by law‚ a written partnership agreement that spells out the terms of operating the partnership and the status of each partner should be developed. 17. A general partner is personally liable only for the amount of money he has invested in the partnership. 18. One of the advantages of a partnership over a proprietorship is the increased sources of capital and credit it offers. 19. One
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1. Jody owns KuppaJava Kiosks‚ a sole proprietorship. Jody’s liability is a. limited by state statute and varies from state to state. b. limited to the extent of capital expenditures. c. limited to the extent of his or her original investment. d. unlimited. 2. Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be a. its greater organizational flexibility. b. its limited
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ACCA Revision F4 Corporate Law Crash (December 2013) ACNB LO1 A valid contract in a Business Context 1.1 The importance of the essential elements required for the formation of a valid contract Everything requires some principles that should be followed to make it a good one. Therefore to make a valid contract there are also some principles to be followed during making it a good one. The basic principles that should be followed by Linda green to make a contract agreement with a potential customer
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Was there dissolution of Smiths? 2. There was clearly no dissolution. The agreement provided that the partnership may only be terminated “by mutual agreement”. Hence‚ Morrissey’s unilateral action (resignation) is insufficient to dissolve the partnership: Moss v Elphick. Section 26 of the Partnership Act (“PA”) is applicable only when the partnership was silent on the duration of the partnership. In this instance‚ the agreement was for the partnership to enure for the joint lives of the parties
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was an unregistered partnership w.e.f‚ 27.7.1964 (to which‚ of course late Murlidhar was not party) under a deed dated 4.9.1964 between five persons who were in two groups‚ the sankhala group having 668 share and the Jains having 346 share. The said firm purchased land admeasuring 31‚075 Sq. feet in Thane‚ with the intention of developing and selling the same. This firm is called the ’main firm’ in these proceedings before us. 5. The Jain group entered into a sub-partnership‚ a registered firm dated
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Forms of Small Business Ownership Chapter 8 Three business ownership choices: 1.Sole Proprietorship 2.Partnership 3.Corporation Sole Proprietors hip A business owned and operated by a single person. What are the Advantages of Sole Proprietorship ? Advantages of Sole Proprietorship Ease and Cost of Formation Distribution and Use of Profits Control of the Business Government Regulation Taxation Closing the Business What are the Disadvantages of Sole Proprietorship? Disadvantages
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FORMS OF BUSINESS ORGANISATIONS Definition Sole-Proprietorship A business owned by one person Partnership An association of two or more persons carrying on business in common with a view to profit Limited Partnership (LP) A partnership consisting of two or more persons‚ with at least one general partner and one limited partner Limited Liability Partnership (LLP) A partnership where the individual partner’s own liability is generally limited Company A business form which
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Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 4. Limited liability companies are entities apart from their owners. answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 5. A limited liability company can be taxed as a partnership. ANSWER: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 6. The law governing limited liability companies is uniform. ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 7. A limited liability company can
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INDIAN CONTRACT ACT 1. S. 124 - Gajanan Moreshwar Parelkar v Moreshwar Madan Mantri (Indemnity) (Plaintiff‚ at the request of the defendant‚ executed two mortgages in favour of Mohandas. Defendant wrote a letter promising to indemnify the plaintiff against any suits by the mortgagee‚ along with executing a third mortgage in place of the previous two. Plaintiff prays that the defendant obtains a release of liability from Mohandas; Issues: 1) Can the indemnified ask for performance of the contract
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