...PROFESSIONAL/ PRATICE Akiva and Tara are equal partners in the business. Akiva and Tara are both have the same education and experiential requirements to start the birth clinic. Akiva’s and Tara’s name will be on the loan. Both are brining the same things to the table like education, experience, money and desire to own their own business. Akiva and Tara are entering into a general partnership with each other. They will have equal control and voting right with the business. The money earned from the business will be represented on their individual personal income tax returns. Within a general partnership each partner is responsible for liabilities jointly of the contract and debts of each partnership. This is important because each person in a partnership can be sued by a plaintiff if the plaintiff names each partner in the suit. The partners can be sued equally if this happens. If the plaintiff does not name all the partners in the suit then just the partner that is named will be sued. If any partner does not pay their part of a loss then the remanding partner may seek indemnification from him or her. Went a new partner joins a partnership the exiting debts and obligations of the partnership are liable only to the extent of his or her capital contribution. But when an incoming partner joins a partnership the partner is personally liable for debts and obligations incurred by the partnership after they have became partners. The Civil right Act of 1964 is laws that businesses...
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...Introduction The concept of fiduciary obligations or duty is one of the most important areas in Australian law. In this project, I will try to illustrate and explain the duties in three kinds of relationships including the relationship between a director and a company, the relationship between the promoters and the corporation and the relationship between business partners. In each relationship, what kinds of the fiduciary duties should be performed is elaborated in details. The aim of the project is to help the readers to understand what “fiduciary obligations” actually means in Australian law. Fiduciary Duty of Directors According to the general law and the Corporations Act ss181 -184, as fiduciaries, the directors must have the fairness, loyalty and good faith when they implement the discretions and powers entitled to them. They cannot use their position of trust to benefit themselves at the expenses of the business without the company’s consent and full knowledge. In other words, we can say since the directors are acting on behalf of their company, they owe the duties of loyalty and good faith due to the fiduciary relationship with the companies. In addition, refer to the Corporation Act ss180, and the case of Percival v Wright 1902, the directors owed duties to the company but not shareholders individually. On the other hand, in depth, the fiduciary obligations of the directors can be divided into four aspects: 1. Directors have the duty to act in good faith for...
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...This report is aim to advice Sheldon around the best business structure for his business called Australian agricultural services. There are six types of business structures under Australian Law, including associations, joint venture, trust, sole trader, partnership and companies. The report briefly explains the reasons for abandoning associations, trust and joint venture and focuses on the advantages and disadvantages of applying sole trader, partnership and companies. Overall, the report provides the best business structure to Sheldon. Associations, joint venture, trust Associations are the business structure for not-for-profit activities (such as sporting or community services groups), which can be divided into unincorporated and incorporated associations. Sheldon’s business is created to make profit. That is to say the associations are irrespective in Sheldon’s case. Joint venture is simply a contractual arrangement between two or more people that they will cooperate to conduct a particular venture or related ventures in a relatively specific period of time. While in Sheldon’s case, it is more appropriate to create a long-lasting relationship, which means joint ventures are excluded. Trust is a separation of legal ownership of assets (Trustee) from beneficial rights (Beneficiaries) attached to assets. In Sheldon’s case, the new piece of machinery developed by Sheldon which will revolutionise farming practices is the assets which could be generate beneficial right...
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...Business Structures LaGloria Williams FIN/571 April 9, 2015 Travis Hayes Every business in the world has a structure to it. It could be a small local business like a boutique or a large corporate business like a popular bank. Having a business structure to your business is what helps determine what type of ownership takes place. There are three main business structures, they are known as; sole proprietorship, partnership, and corporations. These three business structures are important to know when opening a business. This paper will describe the business structures and discussed the advantages and disadvantages that take place in each one. The first business structure is sole proprietorship. Sole proprietorship is a business that is owned by only one person. An example of a sole proprietorship business is a local floral shop; this is because it is a small business. When having sole proprietorship over a business it comes with a lot of positive and negative responsibility. It is very easy to start a small business for someone wanting sole proprietorship. The owner has complete authority of all of the decisions made for the business. The income taxes are lower than other business and easier to handle. The sole proprietor of the business also gets to keep all profits made from the business, meaning they do not have money to pay out to anyone unless there are employees of the business. The negative part of being a sole proprietor of a business is that the owner...
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...Part A: Business owners face a lot of challenges. In order to conduct their operations effectively businesses must be organized. The complex world of business is filled with the pressures of running a business, profit margins, decision-making, liability, Income tax, longevity, government regulations, control, expansion and future of the business and countless other things. In the United States businesses can be organized into one of three basic legal forms. * Sole proprietorship's * Partnerships * Corporations These are further sub divided into different forms. Each form have certain characteristics that set them apart and they also have some advantages and disadvantages. Let’s closely look at all three forms and analyze why one legal form would be selected over the other for a small business. 1. Sole Proprietorship: These are the most simplest and common way of doing business in the United States. A sole proprietorship is an unincorporated business owned by one person. A sole proprietor may run the business himself/herself or may hire others to run it for them but the ultimate decision is that of the sole proprietor. In such type of business form there is no difference between the owner and the business. Some important Characteristics of sole proprietorship's are as follows: * Liability: Sole proprietors suffer from unlimited liability. Since there is no difference between the owner and the business, the owner is liable for all debts and obligations the business...
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...BOOK IV OBLIGATIONS AND CONTRACTS Title. I. - OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book. (1090) Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (1091a) Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. (n) Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of Title XVIII of this Book, regulating damages. (1092a) Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws. (1093a) CHAPTER 2 NATURE AND EFFECT OF OBLIGATIONS Art. 1163. Every person obliged to give something is also obliged to take care of...
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...of the term, a partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits and losses (see business partners). Partnerships exist within, and across, sectors. Non-profit, religious, and political organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. In what is usually called an alliance, governments may partner to achieve their national interests, sometimes against allied governments who hold contrary interests, such as occurred during World War II and the Cold War. In education, accrediting agencies increasingly evaluate schools by the level and quality of their partnerships with other schools and a variety of other entities across societal sectors. Partnerships also occur at personal levels, such as when two or more individuals agree to domicile together, while other partnerships are not only personal but private, known only to the involved parties. Partnerships present the involved parties with special challenges that must be navigated unto agreement. Overarching goals, levels of give-and-take, areas of responsibility, lines of authority and succession, how success is evaluated and distributed, and often a variety of other factors must all be negotiated. Once agreement is reached, the partnership is typically enforceable by civil law, especially if well documented. Partners who wish to make their agreement affirmatively explicit and enforceable typically...
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...partnership is a business owned and operated by two or more persons. Usually a partnership shares the responsibilities for managing the business. Advantages to organizing as a partner include: each partner has the right to share in the profits of the business and each partner has a right to share in the value of the firm’s assets. Disadvantages of organizing a partnership include: each partner has unlimited liability for all legal obligations and debts of the business and partners have joint and several liability. A person who represents another is an agent. The manager would act as the Agent within this agreement. The party that the agent represents is the principal, which are the business owners. Agencies can be created by agreement ratification, necessity, or operation of law. The agent has certain duties to the principal and the principal has duties to the agent. In most situations the principal will be liable for the contracts arranged by agent and the behavior of the agent while conducting the principals business. In our business we would be concerned with the manager placing orders with our purveyors and the way he/she represents themselves with the customers and our business partners. The main difference between principal and agent and of employer-employee relationships is an employer's power to control the activities of a non-agent employee. Whereas an agency agreement brings about a relationship between a principal and a third party that results in a contract, an employee...
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...Issues Question 4 Contract Law Major issues faced by the U.R.E Investment Firm LLC in relation with contract law are lack of proper terms and conditions, lack of importance of health and security of the employees, and one of the most important issue is companies sometime when entering into any contract do not make anything in writing these are some major issues faced by the country in relation with the contract act. A contract is an agreement enforceable by law. Every time an agreement is considered binding and enforceable by the court in the sense that no one can be prosecuted, the agreement is a contract. So while making any contracts these rules should be properly followed, they are informal, oral or written or implied behavior. It must meet the following conditions: Offer and accept unconditionally. Valuable consideration. Authentic consent. The parties must have the capacity to enter into contracts. In the Household Registration Law (a person's residence is the country in which he lived with the intention of permanently stay there) this universal jurisdiction (Glick 2003, 85). Types of contract which should be performed with suppliers, customers and employees are Contract by record These obligations are based on court records, the records of the condition. They are not the real contract, the obligations of the parties arising from the court records of any agreement into a separate reason and only. They can through the courts, legal obligation or guarantee s, that...
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...Corporate and Business Law (Eng) ACCA Paper F4 Format of the Paper 10 compulsory questions each worth 10 marks consisting of: • 7 factual questions (knowledge) • 3 scenario based questions (application). Exam approach – scenario based questions • Follow ISAC approach: Identify the legal issues State the relevant law Apply the law Conclude Core Areas of Syllabus • • • • Essential elements of the legal system The law of obligations Employment law The formation and constitution of business organisations Capital and the financing of companies Management, administration and regulation of companies Legal implications of companies in difficulty or in crisis Governance and ethical issues relating to business • • • • Chapter 1 The English legal system The English legal system • Criminal law vs Civil law The main English civil courts • • • • House of Lords Court of Appeal County Court High Court of Justice Other courts • • • • Magistrates’ Court Employment Appeal Tribunal European Court of Justice European Court of Human Rights Chapter 2 Sources of English law Sources of English Law Case law Common law Legislation Direct legislation Indirect legislation Equity Sources of English Law • Literal rule • Golden rule • Mischief rule Chapter 3 Human rights Human Rights Act 1998 Purpose Derogation Human Rights Act 1998 Convention law Incompatible with convention Chapter 4 Formation of...
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...Business Decisions To better understand the business entity that represents fair choices, we are going to take a look at a couple of unique business scenarios. Each scenario mentioned below will discuss control, taxation, and liability issues faced with each unique situation. In addition, laws and regulations in reference to starting the business will be identified for each business, coupled with risks that each business must protect itself against. Restaurant/Bar Sports bars and restaurants are a dime a dozen, but in this scenario Lou and Jose would like to venture into new horizons by opening a sports bar and restaurant where “customers can socialize and watch sporting events on large-screen TVs that hang around the bar.” Although Lou and Jose do not have enough money to boot strap their company, they do have a wealthy investor who is interested in providing capital in return for a percentage of ownership, Mariam. The business entity is a partnership firm wherein Lou and Jose will handle all activities and business decisions for the company, as Mariam acts as a sound investor by distributing funds through company investments. Taxes will be paid by each partner once the funds have been distributed to each party, according to the Taxation Policy of the U.S.A (QuickMBA, 2010). It is important to recognize the laws and regulations of a partnership before starting a business as Lou and Jose have decided to do. Each of these laws should be carefully measured by each partner...
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...forming a business in the United States. The individual that forms the sole proprietorship and the business is one in the same. For example, if the business owes creditors money, the individual who created the sole proprietorship business has to pay the bill. When entering into contracts the individual is actually agreeing to the contract since the person and business is one in the same. The biggest advantage of doing business under a sole proprietorship is that it is extremely easy to form since the individual creating the sole proprietorship is the business. They are fully responsible for all aspects of the business including making good on payments, collecting monies from customers, and providing the goods or services to their clients. Another reason individuals create sole proprietorships is the flexibility they gain by owning their own business. Since they do not have anybody to report to they can do as they please as far as hours, vacations, expansion, or direction of the business. However, there are many disadvantages that come with a sole proprietorship business. Since the individual is the business they are responsible for all financial responsibilities. They are responsible for ensuring all payments to creditors are paid on-time and in full. If the individual runs into financial issues they are responsible without protection. Also, sole proprietorships can only have one owner so you can’t bring others into the business. Likewise, they are unable to pass the business on...
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...Business Associations Outline 1. Agency a. Creating the Agency Relationship i. agent and principal enter into an agreement (not required to be in writing....no K required) in which the agent acts on the principal’s behalf in entering K’s etc…. 1. if done within the scope of the agency (enter into K, etc…) anything done by the agent is binding on the principal 1. principal may be liable in K, tort, property, etc…. (Vicarious liability) ii. question of agency is a factual matter to be determined as a “matter of fact” b. Res 3d Agency 1.01 (definition of “Agency”) i. Agency relationship created when (First Question to ask when dealing with agency) 1. The principal manifests assent to have the agent act on the principal’s behalf and under the principal’s control; and 2. The agent manifests assent or otherwise consents so to act 1. When agency exists the principles of attribution bind’s the principals to agents dealings with third parties 2. manifestation need not be by words (spoken or written), it may be created by conduct/actions i. Agent rx believes that Principal has manifested assent, and has rx accepted ii. (Notes….Legal Consequences of Agency) 1. Inward Looking Consequences: relate to the relationship between the principal and the agent and are largely governed by the contracts between the parties and by the law of fiduciary duties 2. Outward Looking Consequences: relates to the relationship among the principal, the agent, and a third party and are governed...
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...completion of their publication in the Official Gazette, unless it is otherwise provided. This Code shall take effect one year after such publication. (1a) Article 3. Ignorance of the law excuses no one from compliance therewith. (2) Article 4. Laws shall have no retroactive effect, unless the contrary is provided. (3) Article 5. Acts executed against the provisions of mandatory or prohibitory laws shall be void, except when the law itself authorizes their validity. (4a) Article 6. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law. (4a) Article 7. Laws are repealed only by subsequent ones, and their violation or non-observance shall not be excused by disuse, or custom or practice to the contrary. When the courts declared a law to be inconsistent with the Constitution, the former shall be void and the latter shall govern. Administrative or executive acts, orders and regulations shall be valid only when they are not contrary to the laws or the Constitution. (5a) Article 8. Judicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines. (n) Article 9. No judge or court shall decline to render judgment by reason of the silence, obscurity or insufficiency of the laws. (6) Article 10. In case of doubt in the interpretation or application of laws, it is presumed...
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...Forms of Business There are multiple business formation options available to those looking to start a business. The type of formation depends various factors “including the ease and cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, and tax consideration” (Chessman, 201) to name a few. The major forms of business organizations are general partnership, limited partnership, sole proprietorship, limited liability partnerships, limited liability company, and corporation. Having an understanding of the type of business to form depends on what the goal of the company is. Sole Proprietorship A sole proprietorship is the simplest form of business organization. The owner of the business is the business and there is no separate legal entity. Management decisions concerning the business are made by the owner without having to consort with anyone else. All the profits from the business belong to the owner. One would set up a sole proprietorship if they running a small business, such as a restaurant named after themself. The business would belong to them and is identified by their name as is the form of business. The preference for this setup would be to have complete control of the menu, restaurant décor, staff, and operation of the establishment according to only the owner of the establishment. Partnership A partnership “is a voluntary association of two or more persons for carrying on...
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