Business Law : Question and Answer

Running head: BUSINESS LAW
BUSINESS LAW
Name of the student
Name of the university
Author note

BUSINESS LAW1
Answer to question 1
Bill can undertake the business in his own name. The step to register the business is as
follows. Firstly it is necessary to sign in to the ASIC account and record the name of trade under
the “License and Registration” label. Then it is required to enter the Australian Business number
or made an application for ABN for registration of the business name. Then enter the name of the
business. After that, it is required to select the period of registration. After completion of this
process, it is required to enter the details of the holder of business. Therefore the holder is
eligible if he is not engaged in any form of criminal offenses. The section is enumerated in
Business Name Registration Act, 2011. This is one of the vital stages for starting commerce is
the registration of business. The choices that are obtainable for registration of trade are sole
proprietorship, company, Limited Liability Company, or partnership (McCormack and Hargovan
2015). Mary, who is the wife of Bill, can be included as the co-owner of the business. The
concern of ownership of the co-owners in the trade is achieved by the personal proprietorship of
stock certificates that are delivered by the company (Parker 2015). The personal liability of the
co-owner is limited to the value of types and number of stock certificates owned.
Answer to question 2
A company is a distinct legal entity that is separate from its officers or shareholders. In
Australia, the common category of companies is a proprietary limited and public company. In
general, two or more individuals can set up Pty limited company. They can purchase a share. In
most of the cases, the primary stakeholders are the wife and her husband. They might get each

BUSINESS LAW2
one-half of the shares in the corporation often by the initial share of $ 1 each. There is a various
incorporated organization in the country of Australia are termed as private companies. Theses
Corporation have company directors, managers, shareholders who are especially the same two or
three individuals (O'faircheallaigh 2017). The company in the country of Australia is regulated
and governed under the Australian Securities and Investment Commission, and the same is
administered by the Corporation Act, 2001. The feature of the corporation is as follows. Firstly it
is the artificial entity that is created under the legislation. Secondly, the company is a distinct
legal entity that is unconnected from that of members or shareholders of the corporation. Thirdly
the corporation is the legal unit and thus has a mutual seal on which the label of the corporation
is engraved. Fourthly the corporation has uninterrupted existence that indicates that unlike the
partnership structure of the trade, the enterprise is not affected by retirement, lunacy, death, or
insolvency of members or directors of the company. Fifthly the corporation has a limited liability
that is liabilities of the associates of the company are limited generally to the quantity of the
shares guarantee or held by them. In addition to that, the other characteristic of the company
engages the differentiation of ownership from that of share transferability or management. The
companies in the country of Australia are regulated and administered under The Corporation Act,
2001 (Stewart, Kent and Routledge 2016). That indicates that the functioning of the business
belongs to the corporation. The director is obliged to conclude the annual review in addition to
that makes payment of the annual fee.
The process of setting up a corporation in Australia includes multilayered steps, the large
volume of paperwork in addition to that large quantum of planning (Ivory and John 2017). The
incorporation of a company in Australia is supervised by the Australian Securities and
Investment Commission. The steps for incorporation of business in Australia are as follows