...Company Law for Business: Assignment 1 (i): Is the cat contract with Feline Fertility Pty Ltd enforceable? Your answer should include an analysis of the reason put forward by Lassie Ltd for terminating the contract. The area of law relating to this particular question is the Corporations Act 2001 section 124, which mentions the legal capacity and powers of a company, and section 125 (2), which refers to a company's objects within its constitution. As Lassie Ltd is a company, it is a separate legal entity, meaning it can enter into contracts in the same legal way a normal human being could. Lassie Ltd's constitution includes the objects clause stating that the company's activities are to be restricted to the breeding and selling of dogs and goods and services associated with dogs, this is why Lassie Ltd wants to terminate the contract. This objects clause does not prevent the company from entering into any contracts as the company can enter into any contract that it wants to as it is a separate legal entity. Despite the fact that Lassie Ltd broke its company constitution, the contract is still enforceable with Feline Fertility Pty Ltd due to the abolishment of doctrine of ultra vires. The abolishment of doctrine of ultra vires means a company cannot enter into contracts beyond their power and then later avoid their legal obligations on the grounds that they had no legal capacity to enter into the contract. Lassie Ltd knowingly entered into the contract to purchase 300...
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...Course Business Law I Quiz 1 LEG100 This quiz consist of 20 multiple choice questions and covers the material in chapters 1 through 4. There are five questions from each chapter. Be sure you are in the correct Chapter when you take the quiz. • Question 1 4 out of 4 points The ______ approach recognizes that “business decisions consist of continuous, interrelated economic and moral components.” Answer Selected Answer: Systems Correct Answer: Systems • Question 2 4 out of 4 points The ______ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility. Answer Selected Answer: Systems Correct Answer: Systems • Question 3 4 out of 4 points Which of the following is a type of relationship building lobbying prevalent in China? Answer Selected Answer: Guanxi Correct Answer: Guanxi • Question 4 4 out of 4 points Which of the following is an advocacy group that has lobbied against marketing to children? Answer Selected Answer: The Center for Science in the Public Interest Correct Answer: The Center for Science in the Public Interest • Question 5 4 out of 4 points Which of the following is not a component of legal astuteness as referenced in the text? Answer Selected Answer: A practice...
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...Business Law and Communications LIT1, Assignment 1 Your business is now currently operating as a Sole proprietorship. You and your business are one. Any income the business receives and expenses paid will flow in and out from you personally and will be reported as a Schedule C on your personal income taxes. As a sole proprietor you carry full responsibility and are 100% liable for the company. This means any debts you owe from your business if there are not adequate funds available from the business account, legally you are personally held responsible and your personal assets are at risk. As a sole proprietor you have total control of your business and all business decisions, your company starts the day you choose and can dissolve the day you choose as well. If you desire to have a business name that is different from your name you can easily register for a doing business as also known as “dba” license with the local court. The convenience – this has been a simple and convenient way to run your business in the beginning stages. There was not much more you had to do other than simply run your business and report your end of year total income and expenses. Liability – Total liability of the company is on you as the owner. Legally you are held responsible for all expenses the business incurs if you are unable to pay they can come after your personal assets. Income Tax – You will be required to file an additional schedule on your taxes “Schedule C” where all profits and losses...
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...A type of business where there is no legal distinction between the business and its owner. • Liability – What a business or an owner of the business can be subject to. An owner is personally liable for the debts and or actions of the business. • Income Taxes – Because there is no distinction there is no separation of taxes between person and business. The owner is solely responsible for reporting all business income or loss on his / her personal tax return. • Longevity / Continuity – When the business owner (sole-proprietor) becomes deceased the business is stopped. There is no continuity of the business as there was only one owner. • Control – The sole proprietor is the only person in control of the business. This person is fully in control and does not have to answer to anyone. • Profit Retention – Since sole-proprietors are the sole owner of the business they keep 100% of profits. This lets the owner use the money how they see fit. • Location – A sole proprietor can choose to do business anywhere. This also gives them the option to do business in multiple locations. In my state, Florida, there are no forms required to operate a sole proprietorship however, this may not apply when choosing somewhere other than Florida to operate. • Convenience / Burden – The conveniences are there are no annual reports to file and no fees that you have to pay to the state. However, depending on the type of business, as a sole proprietor, you may still need business licenses and...
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...Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be sold or transferred if the owner choose, no other approval is necessary. Scenario: A small neighborhood businesses, sometimes called, neighborhood store, are an example of sole proprietorship. Creating a sole proprietorship is easy and low cost with no government approval is required at the federal and state level. A license to do business within the city is required at the state level. This form of business is excellent for a person with limited amount of money to start a small business, Sole proprietorship is responsible for business’s contract and torts committed, The sole proprietorship has...
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...Proprietorship - This is considered one of the most common forms of business in America. There are advantages and disadvantages in being a sole proprietor. An advantage would be that you, as the sole proprietor, are your own boss. In contrast a large disadvantage would be that you, as the sole proprietor, are completely liable for every aspect of the business. * Liability: Sole proprietorships have what is considered to be one of the biggest risks when it comes to liability in that they have unlimited liability. Unlimited liability means the sole proprietor is ultimately responsible if the business fails, this would include debts. * Income taxes: legally there is no dissimilarity in the proprietor and the business, so all the organizations income is taxed as if the owner were working like an ordinary person. * Continuity of the organization: Sole Proprietorships will only last as long as the owner is alive. If the owner dies so does the business, so any employees that the owner had would be left to find other means of employment. * Control: Control of a sole proprietorship lies solely in the owner’s hands, he/she has complete discretion of what direction the business will go or even if the business will continue or not. * Profit retention: The profits from the business go completely to the owner, and would not be shared with any employees. However, this also ties to the financial aspect of the business. If there is any debt the profits would be used to pay those...
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...Week 4 Assignment Multimedia activity: Business Organization Devon Harris Instructor: Brian Lahargoue May, 2016 Multimedia activity: Business Organization If I somehow managed to begin my own business, I would run with a sole proprietor business structure. i might want to be in all out control and recognize what is happening at all times. In this sort of structure I will have the capacity to alter my mix-ups and learn. This business structure is cost affordable to me and the way that I am an author I’ve had a sole business with composing music. I 100%$ make and compose my own particular music, therefore I might want to procure 200% of all benefits. I will either get to be successful of go into disrepair, however whenever I attempt I will be better and much more successful. I will be presenting the 4 different type of business structures, which include, sole proprietor, partnership, LLC, and corporation. I will explain each in detail, including the advantages and disadvantages. After reading this I hope to have given you knowledge on the different type of business structures of today’s time. To Begin, WHAT IS A SOLE PROPRIETORSHIP? A sole proprietorship is essentially an unincorporated business that is ran and operated by one person. The owner will reap 100% of all the benefits, but also have to cover the cost or handle responsibilities if business' obligations, misfortunes and liabilities occur. To start your...
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... A sole proprietorship is an inexpensive and easy to form business organization. This entrepreneurship gives the owner the ability to have flexibility in their schedule. The business owner of this organization will benefit from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the business dies also. • Liability: In a sole proprietorship the owner is personally responsible for all of the liability, including all debts. and obligations. The Sole proprietors personal assets are unprotected if the company “goes under” and there are unpaid debts. • Income taxes: In a sole proprietorship federal income taxes are filed as an individual would and Income taxes are submitted on the business owners’ personal income tax return. In this organization the percentage of taxes paid are typically higher. • Longevity or continuity of the organization: A limitation for growth in a sole proprietorship is that it does not allow financial investors thus, leaving the business owner to rely on his/her personal finances. In this organization if the owner dies, the business dies also. • Control: The business owner has all the control associated with the business. The business owner can set up the company as he/she chooses. • Profit retention: The business owner in a sole proprietorship retains all the profits the company...
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...Sole Proprietorship: Sole Proprietorship is a very common form of small business organization. Benefits include having complete and total control as to how the business is run, marketing, hours, as well as the immediate dissolution of the business. Disadvantages range from personal liability for the business. A sole proprietor is also held responsible for all taxes for the business as personal income. Liability: A sole proprietor is held personally liable for any errors or damages caused by the business. The assets of the owner are at risk should the business be involved in a lawsuit. Income Taxes: In a sole proprietorship, the business owner is responsible for all income earned through the business, and must be reported as personal income. This means that while there are fewer tax forms and returns to be filed, the tax liability may be greater than other forms of business. Longevity/Continuity: In many ways, this is a very attractive attribute of a sole proprietorship. A sole proprietor is in complete control of not only the start, run, and dissolution of their business, but they also have the ability to pass the business along to their heirs with very little red tape. There is no need to file legal paperwork to dissolve the business; the owner can simply cease operations. Control: Much like longevity or continuity of the business, a sole proprietor has complete control over business operations. At his/her discretion they can make the decisions as they see fit, without...
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...Startups A Small Business Start-Up Checklist 1. Conduct Research and Development *First, answer the following questions: · Is there a current or potential demand for your product or service? · Who makes up your target market? · Does the demand have potential staying power? · What does the current competition look like? · What are the anticipated production/operation costs? (This includes the average cost of any necessary supplies, equipment, and facilities as well as the cost to hire employees.) 2. Make a List of Available Resources *Determine all the assets, knowledge, and expertise that will be needed to start the business *Get an adviser. For free counsel: · Service Corps of Retired Executives (SCORE) · The Small Business Association (SBA) · Micro Mentor · Additional online business resources 3. Create a Start-up Budget *Calculate your start-up costs and complete a start-up budget worksheet 4. Develop a Business Plan *Define your company's mission, the product/service you intend to offer, the industry and market segments you want to enter, the setup and structure of your business, and a financial analysis *Some free online business resources: · Myownbusiness.org - free online business course · Small Business Association - a collection of basic articles on writing a business start-up plan. · Allbusiness.com - specific articles on business plan creation as well as some downloadable templates. · SCORE - an online business workshop · Bplans.com -...
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... They are usually run by a single person, the owner, or run by a very small staff. • Liability: The owner is liable for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner has a qualified heir to pass the business to it will cease to exist. 2 • Control: As stated above, typically sole proprietorships are completely autonomous. The owner has total control over day to day operations. He also has to final word on all decisions associated with the business. • Profit retention: The owner keeps 100% profits gained. • Expansion / Location: To expand or relocate business the owner only needs to make sure they obtain any licensing or permits required by local or state law. Also, if operating in a name other than their own, they must make sure the business name is legally available for use. GENERAL PARTNERSHIP A general partnership is where there are two or more that own a business with equal powers. To establish a partnership there must be a oral or written contract between all parties. To protect each partner should any issues...
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...Subdomain 310.1- Business Law A1a. Sole Proprietorship- One person owns the business. Unlimited Liability -Under sole proprietorship, only one person owns the business and there is no difference between the business and the owner. The owner takes full liability of everything that happens when operating the business. If a customer slips and falls, the business owner will be liable for 100% of any liability incurred. The personal and business assets are intertwined so if the business is sued, the owner could also forfeit personal property and assets as well. Any debt and obligation accrued by the business belongs to the owner as well. Income Taxes- “Pass-through” taxation. In short, the business taxes are filed under the owner’s individual tax return. Referenced from Nolo.com on “How Sole Proprietors Are Taxed”, when filing taxes for the business, the business income or losses are reported on Form 1040 under Schedule C (Profit or Loss from a Business). Also, with state and local income taxes, the business would have to pay any taxes required as a business. Continuity of the Organization- If the owner dies, the business dies. When the owner dies, the business dissolves. There is no continuity of the business after the owner’s death. Also, because it is a sole proprietorship, you cannot have partners or any other owners which could split liability in the business. The owner can sell or give away the assets of the business but not the business itself. Control...
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...Paper: Legal Forms Of Business with Supporting Scenarios Chanel Moore-Bass Law/531 Business Law March 19, 2012 Carmina Perez-Fowler, UOPX Faculty Online Week Two: Individual Paper: Legal Forms Of Business with Supporting Scenarios There are seven major forms of business: sole proprietorship (sole trader), partnership, limited liability partnership (LLP), and limited liability company (LLC), subsidiary or subchapter corporation (S), franchise, and corporate/company (C- traditional). The various forms of businesses are established and recognized by state laws. To determine the type of business form to use, it is important to know the differences, advantages, and disadvantages. Sole trader/proprietor is the clearest and simplest form of business to establish. It is just one owner, debt/tax liabilities fall on the owner, the income (profits/losses) reports on personal tax return. Examples of sole proprietorship are franchise, self employment, and independent contractor. Advantages are total autonomy of the business, no legal procedure to setup, no set hours/wages, and no shareholders. Disadvantages are if owner dies the business dissolves, full responsibility of tax/debt liabilities, difficulty obtaining long-term financing, and personal liability if sued. General partnership is more than one owner, involving verbal or oral agreement but not filing paperwork to create a specific entity, such as a corporation or LLC, either partner can bind the business to a contract, sharing...
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...Forms of Business Business Law/531 Forms of Business A sole proprietorship owner is liable for 100% of the business. This means that any debts of the business are also debts of the owner (Chesseman, 2010). This is a disadvantage for a sole propriety owner. Sole proprietor owner gets a tax break. The owner can file a single personal tax form. A sole proprietor is also subject to the least amount of government regulations of all business entities (Chesseman, 2010). When it comes to running this type of company, there are no legal formalities to forming or dissolving ones business. This is because there are no shareholders, investors or banks involved.When an owner of a sole proprietorship dies, the business dies with them ( Chesseman,2010). One can also convert one’s business into a partnership. In a partnership partners share profits and the losses together. Partners have shared responsibility with debts from business deals. Both partners are subject to financial liability if one partner is negligent.A partnership is exempt from double taxation. In a partnership owners can claim their portion of income generated through the business as personal income tax (Chesseman, 2010). When in a partnership, partners owe a contractual and fiduciary duty to one another (Chesseman, 2010). Partners have to trust one another because they have a fiduciary duty to each other. Partners should not borrow money, enter into secret contracts, or do anything illegal without other partners...
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...Running Head: LEGAL UNDERPINNINGS OF BUSINESS LAW Legal Underpinnings of Business Law BUS 670: Legal Environment Instructor: January 2, 2014 This assignment will fall on the presumption that I own a business, and it falls into one of the five different categories and company names as follows Tinker’s Home Security Service (sole proprietorship), Tinker & Tailor’s Home Security Service (general partnership), Tinker & Tailor’s Home Security Service (LP), Tinker & Tailor’s Home Security Service, Inc. (corporation), Tinker & Tailor’s Home Security Service, LLC (LLC). Furthermore, this assignment will focus on the fact the businesses are being sued for breach of contract and from there I will list each business and compare and contrast my liability exposure as the owner of the business in the lawsuit. Next for each of the business entities I will analyze how I might limit my liability exposure as the owner. Lastly, this assignment will cover the best business organizational form in the business; I previously described, which will include my personal liability exposure, management, taxation, and the ease of formation of said business. Compare and Contrast my personal liability exposure | Liability Exposure as Owner | Limiting Factors | Tinker’s Home Security Service | Sole Proprietorship | "The sole proprietorship is not recognized as a separate entity from its owner; as a consequence, the debts of the business are deemed to be the personal debts...
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