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

Legal Provisions pertain with Business UnitsOur client is in the process of manikining a company. She wishes to avoid in the flesh(predicate) liability upon any contracts she mayenter into on behalf of the proposed company. Our job is to bearing a report to explain the juristic provisions touch with the formation, trouble and dissolution of demarcationunits. The report will identify the relevant legal principles, which caninfluence the choice of business unit. Explain the differences in the regulative approach adopted for partnerships and registered companiesand take out the procedures for the dissolution of business units.At the ratiocination of the report we will advise our client what type ofcompany would be best suited to her needs. in that location will also be apresentation to go with the report highlighting the main points.2.TYPES OF COMPANYThere are more different types of business unit. Each is formed by agroup of people with a common aim. Britain has what is know n as amixed economy where goods and services are supplied by some(prenominal) privateand public arena organisations, as shown in the following platPrivate EnterpriseSole Trader Partnerships Limited Companies Co-operativesPrivate national Retail ProducerPublic EnterprisePublic corporations Government Departments local AuthoritiesThe private sector/enterprise is the term used to describe allbusinesses which are owned by individuals or groups of individuals and snuff it basically 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 TRADERThis is the oldest, simplest and therefore most common form ofbusiness unit. A sole trader is one who conducts their business bythemselves either using their own name or a business name. This issomebody who is self-employed and who usually starts a business withcapital from their nest egg or by borrowing from friends or a bank. Capital is the bullion which every business needs to enable it to set upand operate, for deterrent example to buy premises, equipment, stock and paywages. 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 less paperwork. A soletrader is not necessarily a one-person business and may have manyemployees or branches. However, the business is owned by one personand it is they who regain the profits.ADVANTAGESDISADVANTAGES- Business affairs can be kept private turf out for completing tax