Business and Legal Environment Case Study 2022

Running head: BUSINESS AND LEGAL ENVIRONMENT
BUSINESS AND LEGAL ENVIRO NMENT
Name of Student
Name of University
Author Note

a) Business Structure
The business structure that would be suitable for Ashley and Bentleigh would be
Company structure as neither of them want to be personally liable for any debt incurred by the
business (Austin and Ramsay, 2015).
Advantages of Company
The advantages of a Company business structure are as follows:
 Limited Liability: The liabilities of the shareholders in a company are limited to the value
of the shares held by them.
 Separate Legal Entity: A company has a separate legal entity, that is, the existence of a
company is separate from its members. A company can be seen to own, enjoy or dispose
of any property in its own name (Hannigan, 2018).
 Perpetual Existence: A company has a perpetual existence. The death, insolvency or
insanity of any director or shareholder of a company would not be affecting the existence
of the company (Business.qld, 2019).
 Professional Management: In a company structure of business the directors, elected by
shareholders, are responsible for the management of the business. For the management of
the day-to-day activities salaried managers are appointed.
 Potential of Expansion: As a public limited company does not have any limit towards the
maximum number of shareholders, hence the business expansion is easily done by the
issue of new shares and debentures.
 Transferability of Shares: The transfer of the ownership of the shares to another party is
easily done (Business.tas, 2017).