Legal Provisions Concerned with Business Units :: Business Management Companies Essays

Legal Provisions Concerned with Business UnitsOur client is in the process of forming a company. She wishes to avoid personal liability upon any contracts she whitethornenter into on be fractional of the proposed company. Our job is to design a incubate to formulate the legal provisionsconcerned with the formation, management and dissolution of businessunits. The theme will identify the relevant legal principles, which faecesinfluence the filling of business unit. Explain the differences in theregulatory approach adopted for partnerships and registered companiesand show the procedures for the dissolution of business units.At the end of the report we will hint our client what type ofcompany would be best suited to her unavoidably. in that respect will also be apresentation to go with the report highlighting the main points.2.TYPES OF COMPANYThere are many incompatible types of business unit. Each is formed by agroup of plurality with a common aim. Britain has what is kn ta ke as amixed saving where goods and services are supplied by both privateand public firmament organisations, as shown in the following diagramPrivate Enterprise touch on Trader Partnerships Limited Companies Co-operativesPrivate human race Retail ProducerPublic EnterprisePublic corporations Government Departments Local AuthoritiesThe private sector/enterprise is the term used to describe eitherbusinesses which are possess by individuals or groups of individuals and evaporate essentially for profit. About half of all trading in Britain iscontrolled by private sector organisations. The other half known asthe public sector/enterprise are businesses which are owned andcontrolled by the government or Local Authorities and run for thebenefit of the country. The sector this report is concerned with isthe Private Sector.2.1 SOLE principalThis is the oldest, simplest and therefore most common form ofbusiness unit. A resole trader is one who conducts their business bythemselves eithe r using their own name or a business name. This issomebody who is self-employed and who ordinarily starts a business withcapital from their savings or by espousal from friends or a bank. Capital is the money which every business impoverishments to enable it to set upand operate, for example to buy premises, equipment, stock and buy offwages. The main advantage is that you can be flexible. You dontneed to discuss with others (e.g. partners and directors) how you aregoing to run the business. You also have little paperwork. A soletrader is not necessarily a single business and may have manyemployees or branches. However, the business is owned by one personand it is they who receive the profits.ADVANTAGESDISADVANTAGES- Business affairs can be kept private except for completing tax