123essaywriting

ADBC103 Business Law

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

ADBC103 Business Law

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

ADBC103 Business Law

0 Download8 Pages / 1,933 Words

Course Code: ADBC103
University: Box Hill Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Question 

Case Study: Business Structures
Sam and George want to go into business with each other. They want to open up a new bakery which will supply a new kind of bread onto the market.  This new bread is similar to those breads from the Middle East.  As far as George and Sam are aware, these types of breads are not currently available anywhere in Australia.  
George has a $100,000 cash which he recently inherited. He is also a qualified baker and has been working for BreadsRUs, a local bakery as its head baker for the last 4 years.  George owns his own home which is valued at $500,000.  
Sam is an accountant.  He worked as an accountant for the last 4 years and whilst e has a wealth of accounting knowledge, he has no available cash  (accounting salaries are minimal).  Sam does however have an AppleMic Computer which is set up with the latest accounting and bookkeeping software.  Sam owns a car which is valued at $80,000.  He has no other assets.  
Sam and George want to start their business immediately.  Sam has found the perfect premises. It’s an old bakery which is already set up with the equipment.  The asking price for the business assets  is $20,000. The landlord is willing to enter into a new lease with Sam and George for $20,000 pa for 3 years  with a 3 year option.
Advise George and Sam of the most suitable business structure for their purposes and its basic requirements. Explain why this would be the best structure for their current operations.  What are the advantages and disadvantages of your chosen structure?

Answer
Facts
George and Sam wanted to form a new business of bakery shop. The breads which they were finding were not available in the market. George has experience of bakery as he used to work for Breads R Us. He has a home of $500,000 value. Sam is an accountant and he is an owner of a care and Apple Mic Computer. There business assets price is $20,000. The landlord is ready to enter the lease with George and Sam for 3 years at $20,000 pa.
Business structure formation
Issues and question arise that what can be the business structure for the formation of their new business. Legal advice can be given that George and Sam can for contract in a partnership of the business. Another way through which they can form the business is to incorporate the company.  
If they do the partnership for the business, then they have to sign a written contract paper where terms and conditions are present. All the rules of the contract are needed to be maintained because breach of the contract is not allowed. The guilty party has to give punitive damage to the innocent party. For the Partnership business Structure number of people is involved in the business. Sole trader structure can be chosen for such business. There are two types of business limited ad general partnership. According to Partnership Act 1997 Australian Business Number (ABN) and Tax File Number (TFN) is needed to be followed with the sole trader entity. Super annotation is the responsibility of each partner in the business.
There are some advantages and disadvantages of Partnership Business:
Advantages

Capital: The partners fund starts up with the capital. There is more money of the partners which helps in flexibility of the potential growth of shares of the partners with equally shared partnership.
Flexibility: It is easy to form a partnership and there are less strict regulated companies in terms of governing business. Interferences of shareholders are necessary which is flexible in terms of management.
Shared responsibility: For running the business responsibility is needed to be maintained. Major abilities are needed to be managed with equal share with accounts and main sales through which the formulation of business is managed.
Decision Making: Decision making of partner’s share is made, so that ideas related to business encounters are solved in a modified structure which helps in forming the criteria of a business.

Disadvantages

Disagreement: Danger disagreements are one of the disadvantages of partnership. In a business two or more partners have different business ideas, so it is sometimes observed that disputes between the thought processes are the main reason of disagreement. For an advisable draft during the formation period procedures of disagreement is needed to be dissolved through partnership.
Agreement: For the partnership agreement business management is needed to rub jointly where the sole traders need to work with the flexibility of business. The will of the shareholders in the company has to taken by the director before forming the business.
Liability: Unlimited liability is needed to be maintained in ordinary partnership. Formation of limited liability partnership works with the benefits of limited liability which is needed to be stopped by partnership model.
Taxation: Self Assessment taxation is one of the major disadvantages of business. For the HM Revenues and Customs registration for self employed persons are needed to be managed in the value of personal taxation of the company. In the limited company in case of partnership subjects of greater level creases issues in limited company.   
Profit Sharing: Equal profit is shared by the partnership and inconsistency is carried with the share which is fair. It is necessary that management rules are needed to be applied which cannot be applied in profit sharing.    

Another way of structure formation of business is incorporating a business. For incorporating a business it is necessary that contact should be done by the secretary of state. Articles are needed t be incorporated by acquiring documentation. Incorporate fees is needed to be paid. Internal Revenue service is needed to be collected with registration event. Online registration is needed to be done with Companies Intellectual property Commission (CIPC). There are 10 steps for this business structure.

A business is needed to be written in the business plan. Certain resources and tools are needed to be set which may help in starting the business.
Training and assistance is needed to be provided with counselling services and free training for the preparation of business plan for relocating and securing business.
It is necessary that customer friendly location is needed to be maintained with advising roles and criteria.
Finance of the business is needed to be maintained with capital research and government back loans.
Legal structure of the business is needed to be planned with cooperative, corporation, limited and corporation rules.
Business name is needed to be registered.
Local and state tax is needed to be maintained.
Permits and business license is needed to be maintained.
Employer responsibility is related with the legal steps.
Local assistance is needed to be maintained with SBA.

The business can be launched by venturing the company with the shield of professional aspect. The structure to incorporate a company falls under Australian Securities and Investment Commission (ASIC) which compiles the rules of Corporation Act 2001. For conducting the beneficial obligations with enforced obligations ASIC rules are needed to be applied. If any company is incorporated certain rules are applied which helps in formation of business in an authentic way. There are certain plans of ASIC business which is needed to be followed with the structural balance which helps in carrying forward the structure of the organization.
As Sam and George are trying to formulate the structure of a business for their baker business so incorporate business is suggested to them. While forming the incorporated business certain rules and regulations are needed to be followed.
 There are some advantages and disadvantages of incorporated business structure:  
Advantages

Raising Capital: Indication of the owner’s business is followed in the incorporation of the company. For the owners of the business enterprise consideration on the time period is followed. Formidable financial resources of the person can be incorporated in the company. Registered companies raise capitals by selling the shares to the financial market.
Corporate existence is independent: For the incorporation of the company the ASIC rules are applied for the registration. Legal personality can be embellished by this way. When the separate legal entity is maintained it is needed that decisions of the director of the company should be taken with the influence of the company. If there is separate legal entity of each business partner then conflict may not arise in this case.
Limited Liability: It is the most significant advantage for the company. As the interpolation of the company takes place so the owners or the shareholders are liable to the debt of the company where shares extended Partnership is controlled in this situation where legally the liability coordinates with the investor’s rules. The business corporate system is carried with the lawsuits of the company. In this case recovery cannot be taken for the debt of the company following the legal entity of separate law which helps in formulating the lawsuits with liabilities. To face the lawsuits regarding liabilities recovery can be taken by the creditors and investors who help in carrying forward the entity of the company in a coordinated manner with absorbed technology.
Tax benefits: For the incorporation of the company, tax benefits are mandatory which can be enjoyed in a lower rate which helps in solving the issue in a collective way. Corporate taxes are needed to be paid by the company in sole trade of partnership. Gradually the motivated parts are needed to be illustrated through which the customer application is taken. Lower rates are needed to be given with corporate tax which helps in carrying forward the business structure of the company with the appraisal. By the tax benefit the pension plans of the business are needed to be formulated which is progressed with tax benefit. Tax benefit also helps in constructing the structure of the company with relevant cases which helps in motivating the structure formation of the business in necessary terms and wide discussions of the subject.

Disadvantages

Incorporation of cost: Comparing to the establishment of proprietorship of sole trader, partnership is needed to be followed. Record keeping is important but additional investments are the reason that legal requirements are followed with the ensurance. Problem arise when application of proprietorship of the company can be followed with different application based on the proprietorship and partnership of business followed with the cooperative direction but problem arise on the structure of the company in an authentic manner through which the consequences are needed to be followed with the situation where abstract of the cost can be calculated.
Personal ownership loss: For the incorporation of the company the retain control of the company is formulated with the shareholders of the company.
Ongoing Paperwork: Annual reports work with accounting reports which reports the financial status. In this case ongoing paperwork is present which has tax returns and license with permits for conducting business. There are certain steps of ongoing paperwork which is the main reason of conflict in the determination of corporation with fixed plan which influence in building the framework of business but sometimes perplexities arises on the online paperwork process which creates problem in the industrial plans and structure.

Conclusion  
There are lots of advantages of incorporate of company which is easier to be accessed than partnership act, so legally it is advised to George and Sam that for establishing a business of bakery the rules of incorporating business structure is perfect. Sam and George can rise up the capital if this structure of business is followed by them. In this case it has been described that George has much more cash than Sam which is inherited by him. Even both of them can evaporate the company and in that case their personal assets will be not in a risk. As George owned house of $500,000 and Sam has owned the car of $80,000, so if they run business structure by incorporating the company then their assets and investment will not fail in the business. By the help of incorporation of the company they will be allowed to use the resources in the beginning of their business. Even the company can form the contract by the own name. So George and Sam entered the contract with the landlord with the name of the company and they used the incorporated structure of the business formation.     
Bibliography
Abbott, Keith, N Pendlebury and Kevin Wardman, Business Law (Cengage Learning, 1st ed, 2013)
Allison, John Robert and Robert A Prentice, Business Law (University Co-Op, 1st ed, 2009)
Collins, Denise, Business Law (Oxford University Press, 1st ed, 2009)
Gevurtz, Franklin A, Corporation Law (West, 1st ed, 2010)
Jozsa, Frank P, Big Sports, Big Business (Praeger, 1st ed, 2006)
Larrabee, F. Stephen, Troubled Partnership (RAND, 1st ed, 2010)
Litka, Michael P and Marianne Jennings, Business Law (Wiley, 1st ed, 2000)
Mancuso, Anthony, Incorporate Your Business (Nolo, 1st ed, 2011)
The Companies Act Of 1961 (S.G. Reid, govt. printer, 1st ed, 2009)
Australian Securities and Investments Commission Act 2001 (2017) Austlii.edu.au
Corporations Act 2001 (2017) Austlii.edu.au

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.

E-mail

Yes, alert me for offers and important updates

Submit 

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 8 pages

PAY 5 USD TO DOWNLOAD

*The content must not be available online or in our existing Database to qualify as
unique.

Cite This Work
To export a reference to this article please select a referencing stye below:

APA
MLA
Harvard
OSCOLA
Vancouver

My Assignment Help. (2021). Business Law. Retrieved from https://myassignmenthelp.com/free-samples/adbc103-business-law/business-structure-formation.html.

“Business Law.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/adbc103-business-law/business-structure-formation.html.

My Assignment Help (2021) Business Law [Online]. Available from: https://myassignmenthelp.com/free-samples/adbc103-business-law/business-structure-formation.html[Accessed 19 December 2021].

My Assignment Help. ‘Business Law’ (My Assignment Help, 2021) accessed 19 December 2021.

My Assignment Help. Business Law [Internet]. My Assignment Help. 2021 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/adbc103-business-law/business-structure-formation.html.

×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}

×

Thank you for your interest
The respective sample has been mail to your register email id

×

CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.

Account created successfully!
We have sent login details on your registered email.

User:

Password:

MyAssignmenthelp.com is the perfect solution to render quality solution for all sort of academic issues. We have hired professionals from different fields of study to provide assistance with different subjects. We successfully have provided different types of assignment solutions on 100+ subjects. We have hired industry experts to deliver nursing assignment, hr assignment and finance assignment help. To offer quality content with IT assignments, we have hired IT professionals to render programming language assignment help and IT assignment help for other types of IT assignments as well.

Latest Business Law Samples

div#loaddata .card img {max-width: 100%;
}

BU1112 Business Law
Download :
0 | Pages :
6

Course Code: BU1112
University: James Cook University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management  University of New South Wales 

BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15

Course Code: BSBWHS605
University: Swinburne University Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA 

BUSN331 Business Law
Download :
0 | Pages :
3

Course Code: BUSN331
University: Centennial College

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Canada

Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration 

LA1040 Contract Law
Download :
0 | Pages :
11

Course Code: LA1040
University: University Of London

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answer:
Introduction 
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
Download :
0 | Pages :
9

Course Code: TLAW202
University: Top Education Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More

Next

Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

11174 Introduction To Management

Free Samples 11174 Introduction To Management .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} 11174 Introduction

Read More »