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LAWS20059 - Corporations and Business Structure

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Central Queensland University

   

Corporations and Business Structures (LAWS20059)

   

Added on  2020-03-13

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LAWS20059 - The following report includes details about corporation and business structure there are two parts to this in Part A - The report provides information about the rights and liabilities of such business structures and the administrative costs involved in them. Types of business structures, Proprietorships, Partnership, Private companies Part B - This part of the report is addressed to the supervisor to notify him that due research has been conducted after sensibly weighing the alternative to come to a proper recommendation for the clients.

LAWS20059 - Corporations and Business Structure

   

Central Queensland University

   

Corporations and Business Structures (LAWS20059)

   Added on 2020-03-13

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Running head: CORPORATION AND BUSINESS STRUCTURESCorporation and Business StructuresName of the studentName of the universityAuthor note
LAWS20059 - Corporations and Business Structure_1
1CORPORATION AND BUSINESS STRUCTURESPart AThis part of the paper conducts a research on the bakery business in Australia form thelegal point of view. The part discusses which type of business structures are used in the industrybased. The report provides information about on the rights and liabilities of such businessstructures and the administrative costs involved in them. The paper also conducts research on thetype question that whether the turnover and size of the business affects the structure which ischosen by the businesses. Types of business structures There are primarily four types of business structures which are usually used to carry out businessactivities namely. ProprietorshipsPartnership Private companies Public companiesEach type of business structures have their own advantages and disadvantages and areparticularly suitable for specific type of business activities. The report conducts research in thebakery industry and find out which type of business structures are predominantly used in theindustry and which would be most suitable for the present requirements of the clients. The rights and liabilities of the business structures As discussed above, each business structure is inclusive of their own advantages anddisadvantages. For instance, a sole proprietor is liable for all the liabilities arising out of the
LAWS20059 - Corporations and Business Structure_2
2CORPORATION AND BUSINESS STRUCTURESbusiness activities whereas on the other hand they have supreme control over the affairs of thebusiness. In case of partnership the partners can be haled liable because of the actions of theother partner and on the other had they have the liberty of sharing liabilities. An incorporatedprivate corporation several restrictions imposed on them by law such as financial reporting anddirectors duties whereas they have limited liability of its members. A public incorporatedorganization has various restriction imposed on them by laws such as mandatory financialreporting, conducting Annual general meetings, public disclosure requirement and is very costlyto operate on the other hand its members are protected by the principles of corporate veil andthus their members are excluded from liability for the actions of the organization as provided bythe Corporation Act 2001 (Cth)The bakery business which the clients have expressed desire to enter into is covered bythe food and beverage industry. As provided by the Spencer & Cantatore, (2016) the food andbeverage industry is a kind of industry where all four types of business structures which havebeen discussed above are used. The large industries such as Bakers Delights, Mrs Mac’s Pies andBalfours are all public companies registered in Australia whereas; there are a few privatecompanies in Australia, which are associated with bakery business such as Baking Humans Ptyltd (Cauvain,2015). The small business in the industry is usually carried out through the use ofpartnerships and sole proprietorships such as Berry Bakery and The Braidwood Bakery. The cost of business The business structures have different level of operational costs involved in it. Forinstance a sole proprietorship has the least operational cost involved along with a partnership.Whereas when it comes to incorporated companies private companies are less expensive to
LAWS20059 - Corporations and Business Structure_3
3CORPORATION AND BUSINESS STRUCTURESoperate as compared to public incorporated companies. Thus is because the level of compliancewith the legal obligations in incorporated organization particularly the public companies are veryhigh which raises the cost of compliance and subsequently the operational cost. The largeorganizations have to comply with several legal obligations, the non compliance of which wouldresult in legal liabilities for them in relation to the Corporation Act 2001 and The AustralianInvestment and Securities Commission Act 2001. In addition the cost of incorporating anorganization is very high compared to that of sole proprietorship or partnership and the processinvolved in the incorporation is also comparatively very complex.Size of the businesses According to the trends in bakery industry or any other industry where all sizes ofbusiness operate it is clear that there is no predominant type of business structure. The businessstructures are chosen by the businesses in accordance to the size and turnover of the business.There would be no point in adopting the structure of an organization where the business isrelatively small is size and the turnover is low. Whereas high turnover and big business wherethe risks of liabilities is high would not adopt sole proprietorship or partnership as they would besubjected to high risk situations. Large businesses often need large funding which can only beobtained in from of a public organization. Therefore the size and the actual turnover of thebusiness is taken into consideration by the businesses in order to determine which type ofbusiness structure would be best suited for the organization. Part B This part of the report is addressed to the supervisor so as to notify him that due researchhas been conducted after sensibly weighing the alternative in order to come to a proper
LAWS20059 - Corporations and Business Structure_4

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