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LAWS20059 – CORPORATIONS and BUSINESS STRUCTURES

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Business structures need to be set up at the outset and then administered throughout the life of the business. In this part, you need to explain and compare the setup and administration costs and the administrative burdens of sole traders, partnerships and proprietary companies. In this part, you need to compare the liability of partners to the liability of individuals involved in the proprietary company under contracts entered into with outside parties. In this part, you need to compare the duties owed by partners to each other and the duties owed by directors in companies. The purpo...

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Question Preview:

Business structures need to be set up at the outset and then administered throughout the life of the business. In this part, you need to explain and compare the setup and administration costs and the administrative burdens of sole traders, partnerships and proprietary companies. In this part, you need to compare the liability of partners to the liability of individuals involved in the proprietary company under contracts entered into with outside parties. In this part, you need to compare the duties owed by partners to each other and the duties owed by directors in companies. The purpose of this part is for you to use the research you have done on the business structures to conduct an interview with a real person or persons (pretend clients) who are in a business, or interested in setting up a business. You advise them on the various business structures they might use for their business, and to get their feedback on what factors would be important to them for their particular business.

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Solution Preview

Setting up a business structure requires a particular format or a particular ownership approach and that is very vital or important in case of setting up a business structure. This is essential in order to set up a legal base and a legal form for the business structure and also helps in positive-progress or advancement of the business.

The liability of individuals and the liability of partners in a proprietary company are different and that is to be discussed here so that a clear knowledge about the same can be achieved and at the same time more information and idea can be brought in for this.

Duties owed by partners to each other and duties owned by directors in companies are different and a brief about that can be provided so that an understanding can be gained about the same and the same time an understanding about the difference between the two types of duties can also be known.

The Partnership Act defines the duties and responsibilities of the partners towards each other in a better way and that is very important in this case. On the other hand company, directors are not the partners they are a part of board members and in some cases, they can be the shareholders.

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