Comparison of Administrative Costs and Burdens in Business Structures
Added on 2023-01-18
23 Pages3053 Words94 Views
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Running head: Company law
Company Law
Company Law
![Comparison of Administrative Costs and Burdens in Business Structures_1](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fka%2F55abef1fe2e94bdea6e108ae78898e00.jpg&w=3840&q=10)
Company law 1
Executive Summary
One of the important decisions made by a businessman while initiating the business is its
structure. The choice of structure made by him depends upon the type and size of business, his
circumstances and how much is he planning to develop the business.
The business structure can determine the tax liability, probable individual liability,
accountabilities of a businessman, along with protection of assets and costs of the business.
So this report is intended to determine and contrast the various administrative costs and burdens
of the sole traders, proprietary companies and partnerships. It also contrasts the liability of the
partners to that of the individuals involved in a company as per the contracts executed with the
third parties.
Lastly, it compares the responsibilities of the partners towards each other and those of the
directors in the companies.
Executive Summary
One of the important decisions made by a businessman while initiating the business is its
structure. The choice of structure made by him depends upon the type and size of business, his
circumstances and how much is he planning to develop the business.
The business structure can determine the tax liability, probable individual liability,
accountabilities of a businessman, along with protection of assets and costs of the business.
So this report is intended to determine and contrast the various administrative costs and burdens
of the sole traders, proprietary companies and partnerships. It also contrasts the liability of the
partners to that of the individuals involved in a company as per the contracts executed with the
third parties.
Lastly, it compares the responsibilities of the partners towards each other and those of the
directors in the companies.
![Comparison of Administrative Costs and Burdens in Business Structures_2](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fvv%2F729d2f9e29ad44048c1cfcfc2932d9ff.jpg&w=3840&q=10)
Company law 2
Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Part A..........................................................................................................................................................3
Comparison of the setup and administration costs and the administrative burdens of sole traders,
partnerships and proprietary companies..................................................................................................3
Set up and administrative costs................................................................................................................5
Administrative burdens............................................................................................................................7
Part B...........................................................................................................................................................8
Comparison of the liability of partners to the liability of individuals involved in a proprietary company
under contracts entered into with outside parties.....................................................................................8
Contractual Liabilities to the third parties in case of a partnership........................................................10
Liabilities to account for in case of a partnership.................................................................................10
Liabilities for wrongs done to the third parties in case of a partnership.................................................11
Joint and several liabilities in case of a partnership...............................................................................12
Contractual Liabilities to the third parties in case of a proprietary company...........................................9
Liabilities to account for in case of a proprietary company....................................................................9
Liabilities for wrongs done to the third parties in case of a proprietary company..................................11
Joint and several liabilities in case of a proprietary company................................................................13
Part C.........................................................................................................................................................14
Comparison of the duties owed by partners to each other and the duties owed by directors in companies
...............................................................................................................................................................14
Actions binding the partners..................................................................................................................15
Liabilities of the partners if a debt is incurred by the partnership..........................................................16
Contracts entered by the partners..........................................................................................................17
Liability of partners if debts were incurred by a deceased partner........................................................18
Actions binding the directors.................................................................................................................14
Liabilities of the directors of debt is incurred by the company..............................................................14
Contracts entered by the directors..........................................................................................................17
Liability of directors if debts were incurred by a deceased director.....................................................18
Conclusion.................................................................................................................................................18
Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Part A..........................................................................................................................................................3
Comparison of the setup and administration costs and the administrative burdens of sole traders,
partnerships and proprietary companies..................................................................................................3
Set up and administrative costs................................................................................................................5
Administrative burdens............................................................................................................................7
Part B...........................................................................................................................................................8
Comparison of the liability of partners to the liability of individuals involved in a proprietary company
under contracts entered into with outside parties.....................................................................................8
Contractual Liabilities to the third parties in case of a partnership........................................................10
Liabilities to account for in case of a partnership.................................................................................10
Liabilities for wrongs done to the third parties in case of a partnership.................................................11
Joint and several liabilities in case of a partnership...............................................................................12
Contractual Liabilities to the third parties in case of a proprietary company...........................................9
Liabilities to account for in case of a proprietary company....................................................................9
Liabilities for wrongs done to the third parties in case of a proprietary company..................................11
Joint and several liabilities in case of a proprietary company................................................................13
Part C.........................................................................................................................................................14
Comparison of the duties owed by partners to each other and the duties owed by directors in companies
...............................................................................................................................................................14
Actions binding the partners..................................................................................................................15
Liabilities of the partners if a debt is incurred by the partnership..........................................................16
Contracts entered by the partners..........................................................................................................17
Liability of partners if debts were incurred by a deceased partner........................................................18
Actions binding the directors.................................................................................................................14
Liabilities of the directors of debt is incurred by the company..............................................................14
Contracts entered by the directors..........................................................................................................17
Liability of directors if debts were incurred by a deceased director.....................................................18
Conclusion.................................................................................................................................................18
![Comparison of Administrative Costs and Burdens in Business Structures_3](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fkq%2Faac6a82165b641adbd53e81f498c8dd8.jpg&w=3840&q=10)
Company law 3
BIBLIOGRAPHY.....................................................................................................................................20
A Articles/Books/Reports......................................................................................................................20
B Cases..................................................................................................................................................20
C Legislation.........................................................................................................................................20
D Treaties..............................................................................................................................................20
E Other..................................................................................................................................................20
BIBLIOGRAPHY.....................................................................................................................................20
A Articles/Books/Reports......................................................................................................................20
B Cases..................................................................................................................................................20
C Legislation.........................................................................................................................................20
D Treaties..............................................................................................................................................20
E Other..................................................................................................................................................20
![Comparison of Administrative Costs and Burdens in Business Structures_4](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fhc%2F6f9fd03aeaba4266a43978562167df7a.jpg&w=3840&q=10)
Company law 4
Introduction
There are various types of business structures prevalent in Australia.Sole trader, company and
partnership are amongst them. A sole trader is an individual who operates solely and is legally
accountable towards all the aspects of a business. He can also employ other people to assist him
in running the business.
A company is a legal entity which has a distinct identity from that of its shareholders whereas a
partnership is an association of persons or bodies running the business 1.
So, this report draws the attention of the readers towards the various administrative costs and
burdens borne by the sole traders, partnerships and companies by comparing them.
The liability of the partners is also being compared to that of the individuals involved in a
company as per the contracts executed with the third parties.
Lastly, it contrasts the responsibilities of the partners towards one another and those of the
directors in the companies.
1 Small Development Business Corporation, Choosing your business structure(2019)<
https://www.smallbusiness.wa.gov.au/business-advice/business-structure/business-structures>
Introduction
There are various types of business structures prevalent in Australia.Sole trader, company and
partnership are amongst them. A sole trader is an individual who operates solely and is legally
accountable towards all the aspects of a business. He can also employ other people to assist him
in running the business.
A company is a legal entity which has a distinct identity from that of its shareholders whereas a
partnership is an association of persons or bodies running the business 1.
So, this report draws the attention of the readers towards the various administrative costs and
burdens borne by the sole traders, partnerships and companies by comparing them.
The liability of the partners is also being compared to that of the individuals involved in a
company as per the contracts executed with the third parties.
Lastly, it contrasts the responsibilities of the partners towards one another and those of the
directors in the companies.
1 Small Development Business Corporation, Choosing your business structure(2019)<
https://www.smallbusiness.wa.gov.au/business-advice/business-structure/business-structures>
![Comparison of Administrative Costs and Burdens in Business Structures_5](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fgr%2Fc3df8638ba364eb2a570f21bc8f44620.jpg&w=3840&q=10)
Company law 5
Part A
Comparison of the setup and administration costs and the administrative burdens of sole
traders, partnerships and proprietary companies
Particulars Sole traders Partnerships Proprietary Companies
Part A
Comparison of the setup and administration costs and the administrative burdens of sole
traders, partnerships and proprietary companies
Particulars Sole traders Partnerships Proprietary Companies
![Comparison of Administrative Costs and Burdens in Business Structures_6](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fhb%2F81388dd1e90c4de99b2aae997adbf18f.jpg&w=3840&q=10)
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