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Laws of Business Interruption

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Added on  2020-01-28

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10 CONCLUSION 10 REFRENCES 12 INTRODUCTION Government framed various types of rules and regulation which manager have to follow at the time of creation of business. Legal aspects of business is governs with the legal entity which framed policies and regulation regarding formation of any entity. Sole trader having full control on the assets and responsible to take corrective decision which are imposed on them.

Laws of Business Interruption

   Added on 2020-01-28

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LEGAL ASPECTS OFBUSINESS
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INTRODUCTION.......................................................................................................................................3TASK 1.......................................................................................................................................................31.1 Sole Trader........................................................................................................................................31.2 Unlimited partnership........................................................................................................................51.3 Limited liability partnership..............................................................................................................6TASK 2.......................................................................................................................................................72.1Duty to act within powers...................................................................................................................72.2 Duty of directors to promote the continuous growth of organization.................................................82.3 Duty to exercise independent judgment.............................................................................................92.4 Duty to avoid complications of interest...........................................................................................10CONCLUSION.........................................................................................................................................10REFRENCES............................................................................................................................................12
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INTRODUCTIONGovernment framed various types of rules and regulation which manager have to followat the time of creation of business. Legal aspects of business is governs with the legal entitywhich framed policies and regulation regarding formation of any entity. The present is based onbusiness organizations and the duty of directors regarding company. There is growing concernthat single person is able to form any firm and able to bear all liabilities (Benington and Geddes,2013). Directors are the main body of every firm for taking corrective decision in order improveperformance of company. TASK 1 1.1 Sole Trader.Sole trader is also known as sole proprietorship who owns simple business and rumindividually. He is only responsible to every legal aspects of their business and personally liablefor every functions. Sole trader having full control over company. He is only responsible tomaintain performance and try use own efforts for put company in profitable position. Also liableto pay entire debts and liabilities which created among them. In order to start this organizationperson don’t want much amount to start this. The registration of this company is compulsory notcompulsory means its optional for them (Bryson, 2016). There is no separation of profit amongmembers because there is only person who having full control over it. Bt at the time of startupperson have to follow entire rules and regulation which are imposed on them and comply withthe policies which having impact on them. They needs to maintain less financial reports incomparison to limited companies. Sole trader having full control on the assets and responsible totake corrective decision which are imposed on them. Also he have some responsibilities whichare as aligned below:Take corrective decisions regarding company.Have to manage entire operation of the organization in order to improve theirperformance and try to put it in profitable position. Responsible to send self assessment tax return each and every year. After formation of company have to register it (Ke, Wang, Chan and Lam, 2010).
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Maintain overall performance of the organization through which they can easilymeet organizational goals and try to achieve their set of target as well. Advantage of sole proprietorship;Control- Individual person having full control on the business. Also he can run companywithout interference of any other person (Soehnlein and Lindbom, 2010). No other members areable to take decision regarding organization. Profit retention- There is no burden of separation of profit because single person havingall right over it. Private data- Information or data which are related to sole proprietorship are kept secrete,like limited companies needs to make public announcement after registration of company(Lewis, 2011). Specialist- Sole trader provide more special services to their customers in order toimprove their performance and try to earn profit margin. Personal- He can able to corrective and quickly decision because there is no interferenceof other people. Simple to set up- Sole proprietorship is simple to set up as well as operate. Also it requirecheap amount for startup this business. Full control- Individual person having full control over entire assets of the company andable to take corrective decision. Manage operation- He should capable enough to maintain overall performance of thecompany through they can easily attain their set of target and goals as well. Registration- The registration is optional for them.Disadvantage of sole proprietorship; Liability- Its not a separate legal entity by law. So that, members bear unlimited liabilitywhich means organization gets into debts, the sole trader is liable (Tang, Shen and Cheng,
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