business organization is a study of complexity: as each business is different‚ each form of business organization is also unique. From a local hot-dog vendor to a trucking company‚ from a restaurant to a multinational‚ each business has different legal‚ moral and ethical concerns‚ and there is no "one-size-fits-all" approach to determine how a business should best be organized. Take the first two businesses‚ the hot-dog vendor and the trucking company‚ as an example: assume that each business is
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registration and licensing‚ which are similar but vary from state to state. Formation Every state has its own code of business laws authorizing the formation and management of business entities. All states allow individuals to conduct business activities as a sole proprietor without forming an independent legal entity. The simplicity of forming a sole proprietorship is one of its chief attractions to many entrepreneurs. Some states require a sole proprietorship to obtain a statewide business license
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Lesson 1. Aggregate vs. Entity Approach 1. Aggregate approach: the partnership as a separate entity is disregarded and each partner is viewed as directly owning an undivided interest in the partnership’s assets operations. If the tax law used only aggregate concepts‚ the partnerships and their partners would be treated: - Each partner would be taxed on share of partnership income and would be viewed as owning a direct interest in each partnership asset. - Contributions and distributions would
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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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The main issue relates to corporate entity or personality‚ a company being a legal entity independent of its members‚ can enter into contracts and own property in its own right‚ can sue and be sued and also taxed in its own name. The principle of corporate entity was established in the case of Salomon v A. Salomon ‚ now referred to as the ‘Salomon’ principle. The facts of this case were that the owner of a business sold it to a company he had formed‚ in return for fully paid-up shares to himself
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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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His employment contract stipulated (clause 9) not to solicit customers of the company if he were to leave employment of Gilford Motor Co. Mr. Horne was fired‚ thereafter he set up his own business and undercut Gilford Motor Co’s prices. He received legal advice saying that he was probably acting in breach of contract. So he set up a company‚ JM Horne & Co Ltd‚ in which his wife and a friend called Mr Howard were the sole shareholders and directors. The High Court held that Mr Horne would not break
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Project-Corporate Law-I Relationship Between holding Companies and subsidiaries and the concept of piercing the corporate veil in the light of recent Vodafone ’s decision and Finance Act 2012 Submitted to- Dr Kiran Kori Faculty-Corporate Law Submitted by-Prarthna Baranwal Semester-V Section-A Roll No.-92 HIDAYATULLAH NATIONAL LAW UNIVERSITY‚ RAIPUR CHHATTISGARH 1 ACKNOWLEDGEMENTS I would like to express my heartfelt gratitude to our respected faculty Kiran Kori Ma’am for giving
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What is meant by separate legal entity & the corporate veil? 2. When will the corporate veil be lifted (ie. shareholders held to BE the corporation)? a. Fraud b. Agency c. Groups d. Tort How does a comp become separate legal entity? • Comp become SLE on date of certificate of registration and approval with ASIC: s119 CA • Effect: become SLE or “legal person” with legal capacity/powers of corporation: s124 Corporate Veil & Separate Legal Entity Once comp reg
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