- Discuss the forms of business organizations and how to create/terminate them.
ID: 397732 • Letter: #
Question
- Discuss the forms of business organizations and how to create/terminate them.
- Discuss the factors to consider when selecting a business's organizational form.
- Explain a trend and the main reason for boards of directors and shareholders becoming more active in the operations of publicly held corporations.
-Discuss any of your own experiences as sole proprietors (or partners in a partnership). Feel free to discuss the advantages and disadvantages of this form of business. Try to answer the following situations:
1. Four friends jointly own a summer cottage and use it solely for their personal enjoyment. Is this a partnership? Please explain why or why not?
2.What if the four friends rent the cottage to other people for part of the year?
3. Suppose a renter dies in the cottage due to a gas leak. Would all of the owners be liable? Please explain why or why not?
Explanation / Answer
1.
It it however very simple to form a sole proprietorship. Any person can start his sole proprietorship business. It includes very less legal formalities and some simple registration process which is not a complicated thing.
Formation
It must have two or more members. The agreement is made between the partners with regards to the share of profit and losses etc. which is generally called partnership deed. In this , certain things are mentioned such as, Name, nature, address, location, duration of partnership business, profit and loss sharing ratio, salaries to partners etc.
Then partners have to get their firm registered with the registrar of firms of concerned state by signing certain documents.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.