Business Law

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

BUSINESS LAW1
Question 1
For the purpose of this situation, sole proprietorship is the recommended business
structure that is suggested to Felix for his business plan as he is the only member as of now,
investing in the business with the necessary gadgets and capital along with the administrative
skill of convincing real estate businesses to buy his drone shots of the properties in Adelaide.
Sole proprietorship form of business will be apt for him at the moment as he would be
running the business single handedly, without ant demarcation of the owner and the business
entity1. He would be the one to derive all kinds of profit as well as loss from the sole
proprietorship.
Question 2
In this scenario, Felix and Oberlisk is suggested to opt for a partnership form of
business which involves the engagement of two people who intends to carry out a business
relations together in order to earn profit. Partnership is simple and inexpensive business set
up which holds the partners collectively as well as severally responsible for any business
transaction2. The partners are to decide among themselves the share of the profit that they
would be deriving from the business revenue. Every partner is a principal as well as an agent
working for the partnership firm. A partnership form of business, however, holds the partners
unlimitedly liable, which means the partners shall be held personally liable to pay for the debt
of the business, if the business fails to make the payment3. This often affects the personal
property of the partners when the firm is bankrupt. In addition, each and every partner is to be
1 Nithman, Robert W. "Business Entity Selection: Why It Matters to Healthcare Practitioners: Part I-Conceptual
Framework, Sole Proprietorships, and Partnerships." (2015) 30.5 The Journal of medical practice management:
MPM 358.
2 Iyer, Easwar. "Theory of alliances: partnership and partner characteristics." 2013 Nonprofit and Business
Sector Collaboration. Routledge. 48-64.
3 Lewis, Winnifred A. "Waiving Fiduciary Duties in Delaware Limited Partnerships and Limited Liability
Companies." (2013) 82 Fordham L. Rev. 1017.