Nowadays, trading between people and country become easier and easier. With the boom of economic, a consideration of starting a new business is very important. Common business structures including Sole Trader, Partnership, Joint Venture, and Corporations. Among those structures, partnership and corporations are the most popular structures for creating a business. This essay will discuss all of them point by point.
When we say that partnership is easy to establish, the first thing comes out is that partnership doesn 't need to be registered. Which means partners don 't need to fill paper works, or spend money on legal formalities. There is one exception, if the partnership use a business name, then this name needs to be registered. According to partnership definition, in common, “Test is that business is being carried on by, or on behalf of, all the partners”. Each partner got himself/herself specialist in a particular area, they can save a large amount of money from hire outsider to get access to professional knowledge. “Mutuality of rights and obligations” indicate that everyone has the same right for the operation. Therefore, a partnership is a low cost but high effective business structure.
On the other hand, referring to a separate legal entity, a company is required and regulated by the Australian Securities and Investments Commission and other related authorities. For examples, the company must provide the financial statement under AASB’s requirement. All the information and movements of the company have to be disclosed to their shareholders, associated companies and public. It also includes more complicated in taxation that need to be applied to the Australian Taxation Offic...
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...artnership between Adrian, Bob and Charlotte, Dennis. However, according to Buckingham case, if there are more characters like partnership than not a partnership, it should be a partnership. Basis the analysis on step 2, it’s more likely be a partnership between Adrian, Bob and Charlotte, Dennis.
Default Rules as to Interests and Duties as Partners:
Section 24(1)(a) indicate that “Partners share equally in capital and profits and must contribute equally to losses”, Adrian, Bob,Charlotte and Dennis agree that they would share profits equally, but they didn’t mention about the loss. Therefore, all of them four will share the losses equally. Section (1) (e) gives all parties the right to management the business. Thus, even Adrian, Bob,Charlotte and Dennis are taking charge for different section of the business, all of them are decision makers. However, any dision
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