Business And Legal Environment

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Running head: BUSINESS AND LEGAL ENVIRONMENT
BUSINESS AND LEGAL ENVIRONMENT
NAME OF THE STUDENT:
Name of the university:
Author’s note:

BUSINESS AND LEGAL ENVIRONMENT1
Issues
The issues involved in the given scenario what type of business will be best for Warwick
and Sunny and which business will be least risky for them.
Rules
There are three types of business structure in the territory of Australia, Such as, firstly,
sole trader business structure, secondly; company, thirdly; partnership (Cavusgil et al., 2014).
The sole trader business structure means an individual will be legally responsible for every
aspect of his business, which has included the losses and debts. The owner of the business will
be liable in his day to day business conduct.
The company business structure is one separate type of business, where the company
holds a separate legal entity like an individual (Tennent, 2014). This business structure in totally
separate kind of business than a partnership or sole traders. There are two types of companies,
such as public companies and proprietary companies. The proprietary company can be divided
into two categories, such as limited by shares and limited by guarantees.
The partnership business structure is one type of business where two or more individuals
have distributed their income as well as losses among themselves. There are three types of
partnership businesses such as the general partnership, limited partnership, and incorporated
limited partnership.