Topic 1 X Introduction to Company Law LEARNING OUTCOMES By the end of this topic‚ you should be able to: 1. 2. 3. 4. 5. List the types of business entities and its distinctions; Identify the various forms of companies and the changing of status; Discuss the doctrine of separate legal personality and lifting of the veil of incorporation; Describe the agency principles related to company law; and Evaluate the duties of a promoter and the pre-incorporation contracts. X INTRODUCTION
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seldom found in the United States. B. It is a form of business that has only one owner. C. It is a separate legal entity‚ distinct from an owner. D. It is a business form in which the owner enjoys limited liability. Correct: The Correct Answer is: B. A sole proprietorship is a form of business that has a single owner‚ known as the sole proprietor. The business is not a separate legal entity distinct from the owner. 2. Sara and Cilia run a café together. They share ownership of and liability for
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addresses of the owners and the name and address of its registered agent. “The entity is heavily favored because it provides liability protection from lawsuit judgments and business debts just like a corporation. On the other hand‚ the entity does not carry the legal requirements for running it like a corporation” (Chapo‚ 2007). Members of LLCs can be individuals‚ other LLCs‚ corporations and even foreign entities. One person can form an LLC alone‚ and there ’s no limit on how many members an
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a business venture‚ many of them start with a sole proprietorship. A sole proprietorship usually involves a single person who runs a business on his or her own. Sole proprietorships are small businesses that often take off to form larger business entities when the owner desires to do so or when the right opportunities are presented. Some of the disadvantages of having a sole proprietorship are the simplicity of operating the business‚ ability to have complete control over business affairs‚ increased
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also file self-employment taxes. The profits and losses of the business are reported through the owner and are taxed at the individual rate. The sole proprietorship business entity is the simplest form to set up‚ but the owner typically must sell the business to retrieve his investment. 2 3 Partnership A partnership entity has two or more owners sharing equal control‚ unless the partnership agreement states otherwise or the structure is set up as a limited partnership. Similar to a sole proprietorship
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Business Organization and ADR Business Rrganization and ADR Nicole Christopher LAW575 Week 2 Professor Sonja Dickens June 8‚ 2015 Summary Industry Outline Selections for Practices of Business Company Process Choice Aids Disadvantages What is ADR? ADR Approaches of Arguments Resolution Negotiation Why Negotiation? Proceedings Implication Industry Outline Machinery Resolutions Maintained and controlled by a individual Association Computer Purposes Networking
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amount of revenue as larger corporations do and this will allow them not to be double tax so they are allowed to report their profits or losses on their personal income tax returns. “A LLC is not a separate tax entity like a corporation; instead‚ it is what the IRS call a “pass-through entity‚” like a partnership or sole proprietorship. All the profits and losses of LLC “pass through” the business to the LLC owners (called member)‚ who report this information on their personal tax returns” (Fitzpatrick
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contributed to my lowered grades. My natural love for my parents couldn’t accept their relationship falling apart‚ and this led to a distraction from studies and an inability to concentrate on things. I viewed “parents” as a singular entity‚ if they separated‚ that single entity would have been shattered. I understand however‚ that I should have been motivated nonetheless. I recall the day vividly. I returned home at around 4:30 PM from a club meeting at school‚ and I overheard vehement screams arising
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employees. The legal definition of "small" often varies by country and industry‚ but is generally under 100 employees. These businesses are normally privately owned corporations‚ partnerships‚ or sole proprietorships. Corporations can be defined as an organization of people legally bound together by a charter to conduct some type of business. There similarities between small business organizations and larger corporations can be compared in four different ways. Both are separate‚ legal entities that are
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services to customers in exchange for money or other goods and services. After deciding to start a business‚ one of the most important issues is the form of business entity that will serve as the vehicle in pursuing the business that will affect the company’s and owner’s legal liability and income tax treatment. The three most common legal forms of business organization are the sole proprietorship‚ partnership and corporation. SOLE PROPRIETORHIP Sole proprietorship is a business owned and operated
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