Limited liability partnership

This essay will explain the concepts of separate personality and limited liability and their significance in company law. The principle of separate personality is defined in the Companies Act 2006(CA) ; “subscribers to the memorandum, together with such other persons as may from time to time become members of the company are a body corporate by the name contained in memorandum.” This essentially means that a company is a separate legal personality to its members and therefore can itself be sued and

there are some risk and disadvantage involved especially to the owner of the business. The reason being is that the owner and the business are not treated separately legally. Below are a few disadvantages of sole proprietorship. DISADVANTAGES OF PARTNERSHIPS Income Of course, being a sole proprietor is extremely risky as James may not be able to receive guaranteed salary every month if the business isn’t doing well. If the business happens to fail, James might not receive income at all, worse still

profits equally. In this way, it can be said as they are in partnership type of business. The legal forms of the business are named UNINCORPORATED AND INCORPORATED FORMS AS: 1. Unincorporated form a. sole trader b. partnership c. trust d. franchise 2. Incorporated forms a. incorporated not for profit associations b. cooperatives (non-profit or business) c. company/corporation (registered under the corporation’s act 2001) The partnership is an unincorporated form of business as they are not incorporated

I- Introduction There are many pros and cons for starting a partnership. A partnership is simple, inexpensive and easy to start. Partnership's formalities are relaxed where there are no required annual meetings, as compared to other formations. Unlike other types such as a corporation, a partnership is not required to file annual financial reports with the state and not required to maintain documents. Most importantly, partnership enjoys favorable tax treatment as a passed-through entity and

the business, the owners will no longer be classified as partnerships and the business will end. When you are set as partnership, the decisions of every shareholder will have to be honoured and if they do not have enough experience, the business could be having troubles. An example of a partnership can be H&M, M&S... Public limited company: a public limited company has to be registered before it starts trading. The owners of a public limited company are its shareholders; which are the people who

two issues have arisen regarding your business, one being if a partnership may be formed with a volunteer and as to whether you are liable owing to the conduct of one of your stall volunteers. Both situations in hand are relatively common, therefore the law is well established on these matters. With respect to the first issue concerning a partnership with Ms Jones, there are many routes one can take when setting up a business partnership. From what is to be understood from our previous meeting, the

general partnership, corporation, and professional limited liability partnership (PLLP). Even though it would be an option right now, a sole-proprietorship would not work in the long run for Mainstreeter Law because they are only available to single individuals. In the future, Mainstreeter Law hopes to have multiple partners. Because of that, a sole-proprietorship was not an option. Furthermore, sole-proprietorships do not provide any sort of liability protection. For a general partnership, two or

proprietorships, general partnerships, C corporations, and limited liability companies. Ownership of C corporation is represented by shares of the stock, or shareholders, it is the most common type of the business, where ownership to the shareholders offers a limited liability to all its owners. Limited liability companies are those companies who have the form of the partnership, in which all the partners have the right to participate in management and have the limited liability for company debts

Chapter 3 - NATURE OF FINANCIAL MANAGEMENT What is finance Finance can be defined as he art and science of managing money. Virtually all individuals and organizations earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among individuals, business and governments. Nature of Financial Management Financial Management as an academic discipline has undergone fundamental changes as regard

Every organisation has a different organisational structure. The private sector is funded by private investors, these invest capital into a business in hope of returning a greater capital in the future, they are generally profit drive. A public sector is an organisation generally funded by the public and state. The organisations are required to offer a service which will benefit the whole of society for example the NHS. A voluntary sector is an organisation based on non-profit, and are not funded