only form of business organizations that do not require a formal registration with the state are a sole proprietorship and a general partnership. Maria cannot form either organizations since she has limited partners‚ her parents and her boyfriend Roman‚ who are not actively managing the business. Even in a general partnership‚ she will require articles of partnership that states how the profits and losses of her company are to be shared‚ how the business will be managed‚ the continuity of the business
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Tutorial 2 1. Nor Luc is a Malaysian and has a sole proprietorship in Singapore in the form of a retail shop. The shop is rented. He has a car registered in his name and he uses it for both business and private purposes. He also owns an expensive Rolex watch. He lives in a rented HDB house. He also has $1000 in his local bank account‚ which is in his name. Of late his business has not been doing well and he has run into huge debts. The total debts of the business amount to $170000. (a) Advice
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Task 1 T1.1 Businesses can be mainly identified in two different forms‚ by taking an example differentiate the limitations of those two forms of businesses The 2 different business forms are Public Private What is public organization ? A public organization is where the government of the country controls it‚ in favor for their fellow country mate. The payment for the employees are often made by the tax collected from public. Example of private sectors are : State Prison‚ Government
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expanded are more efficient and offer more product. • Sole trader to partnership The advantages to Fantastic Entertainment going from Sole trader to partnership are that it provides a healthier foundation for a company. Sole traders assume full responsibility and liability for the actions and finances of the business having an unlimited liability in most cases. Another advantage to Fantastic Entertainment having a partnership is that they are often perceived as professional. They are considered
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management decisions‚ government restrictions‚ personal liability‚ tax considerations‚ and the like” (Henry Cheeseman‚ 210‚ p. 529) Moreover‚ choosing the right form to run a business will also determine how the business is organized‚ how the cash flow is‚ and how the business is taxed. “The most common forms of business organization are: sole proprietorship‚ general partnership‚ limited partnership‚ limited liability partnerships‚ limited liability company‚ and corporation” (Henry Cheeseman‚ 210
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W BLA 7 3 r e t p a Ch erg b d l o G r o s s e f o Pr Partnerships have existed for thousands of DETAILS: years. partnership can be created with no formalities‚ its partners are managers‚ partners are fiduciaries‚ partners have unlimited liability‚ and partners share profits and losses Example Two students agree to buy basketball tickets‚ to resell them (scalping)‚ and to share the profits. They may not intend to create a partnership‚ but they have. If one of the students has a bad night and
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responsibility for liabilities Is liable with all his assets (no limits) Sole trader Advantages Easy to set up („one window scheme” procedure) No legal and financial barriers (no permits and licences‚ no initial capital‚ no fees) Single-entry bookkeeping (simplified method of accounting) Flexibility and easy to manage Sole trader gains all profits (without taxes) Lower social insurance contributions (not lower than 30% of minimum remuneration for work) Disadvantages Unlimited liability for business
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corner shops or market stalls etc. Sole traderships have unlimited liability so if the business fails to pay its debts the financial responsibility falls on the owner/s to pay the debts in full even if they have to sell their business‚ personal possessions and assets. <br> <br>Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work‚ manage and are responsible for the
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earliest examples of bodies to be incorporated by Royal Charter (prior to parliamentary democracy). Commercial Development The 17th and 18th Centuries led to the formation of large‚ partnership-like structures known as joint-stock companies‚ so that pooled investments could be made. At this point‚ partnership and corporate law were fused. The Bubble Act of 1720 attempted to stop the rampant growth to joint stock companies (excessive speculation)‚ particularly in the Dutch tulip industry. Such
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This is called unlimited liability. Raising capital could be difficult for one person and there is less capital available for expansion. A possible explanation for this is that a sole trader is taxed at a higher rate than a private company. A partnership can have between 2 and 20 partners who are also personally liable for the debts of the business‚ even where this arises from the actions of one of the other partners. Partnerships aim to make a profit and a partnership deed can be used to set out
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