Partnership – business organization owned and operated by two or more individuals or entities. Can be General (all partners share in outcomes and have unlimited liability) or Limited (limited partners do not actively participate and liability is limited to their contribution). Advantages: Same as sole proprietorship Disadvantages: Same as sole proprietorship Corporation – a business created as a distinct legal entity owned by one or more individuals. Advantages: ownership can be transferred easily
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1.1 INTRODUCTION Industrial has revolution led to the emergence of large scale business organizations. These organization require big investments and the risk involved is very high. Limited resources and unlimited liability of partners are two important limitations of partnerships of partnerships in undertaking big business. Joint Stock Company form of business organization has become extremely popular as it provides a solution to (2) overcome the limitations of partnership business. The Multinational
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their own names because creating a separate business or trade name isn’t necessary. Sole proprietorship is also known as "proprietorship". There is no separate legal entity created by a sole proprietorship‚ unlike corporations and limited partnerships. Consequently‚ the sole proprietor is not safe from liabilities incurred by the entity. The debts of the sole proprietorship are also the debts of the owner. However‚ all profits flow directly to the owner of a sole proprietorship. The benefit of the
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Legal Forms of Business: Week 2 Legal Forms of Business In business‚ the first decision that is made is usually the most difficult. When making business decisions‚ the owner must decide what types of business organization is the best for the company. There are seven forms of business that will be discussed as well as scenarios in which each of these forms of business would be the preferred form. This paper will also justify why the corresponding business form is preferred. The forms
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History The concept of a corporate personality traces its roots to Roman Law and found its way to the American colonies through the British. After gaining independence‚ the states‚ not the federal government‚ assumed authority over corporations. Although corporations initially served only limited purposes‚ the Industrial Revolution spurred their development. The corporation became the ideal way to run a large enterprise‚ combining centralized control and direction with moderate investments by a
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Company Law 1) Explain the background to the case Salomon vs. Salomon. Mr. Salomon was a leather merchant in a large establishment. Solomon converted his business into a limited company as Solomon and Company limited with his wife and five children becoming members. Each member took one £1 share each. The company bought the business for £39‚000. Mr. Salomon subscribed for 20‚000 further shares. The company also gave Salomon £10‚000 in debentures (i.e. Salomon gave the company a £10‚000 loan
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business is its own legal entity and assumes the liability for all debts and the individual shareholder’s assets are protected. This type of organization would protect you from your employee accident concerns as well as protect your personal assets from loss or debt incurred by the business. Income Taxes. C-Corporations must register their business with the IRS as well as state and local agencies and obtain a tax ID number. Since the corporation is a separate legal entity‚ the corporation must file
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The incorporation of a company is an artificial person which exists as a separate legal personality. This separate personality means that the company is separate and distinct from its participants. The company needs to be treated like “any other independent person” with rights and liabilities‚ even if it is owned and managed by one man. It is capable of holding its own property and may sue or being sued in its own name. The company has perpetual succession which implies that it is able to carry on
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which comprises the sale and purchase of equipment‚ and‚ timber‚ and oil and gas interests — as a sole proprietorship. In 1980‚ he incorporated Worldwide Machinery Sales‚ Inc.‚ a Mississippi corporation‚ and began conducting the business through that entity. In 1981‚ he formed a second Mississippi corporation‚ Worldwide Purchasing‚ Inc.‚ and funded that corporation with the 100 percent interest he held in Worldwide Machinery. Petitioner was and is the sole shareholder of Worldwide Purchasing‚ Inc. (Braswell
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111912 KOK JE SEN 111919 LEE CHIA YEE 111921 TOH SHER LYNN 111987 YEOH LI YEN 111996 1. “Incorporation is the bedrock upon which Company Law is built.” Incorporation means the process of legally declaring a corporate entity as separate entity from its owners. Incorporation has many advantages for a business and its owners‚ including: Protects the owners’ assets against the company’s liabilities. Allows for easy transfer of ownership to another party. Achieves a lower tax
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