Company Partnership Assignment Report

ASSESSME
NT 1 –
INDIVIDUA
L
ASSIGNME
NT
LAWS20059 – TERM 1, 2020

1
Student Details:

2
Table of Contents
Introduction......................................................................................................................................2
Comparison of business structures..................................................................................................2
Costs, administrative and regulatory burdens of setting up and running partnerships and
companies....................................................................................................................................2
Potential liability to third parties.................................................................................................5
Fiduciary duties...........................................................................................................................6
Other factors................................................................................................................................8
Final advice......................................................................................................................................8

3
Introduction
Partnership, sole trader, company and trust are the four main types of businesses that can
be used to create a business in the nation. Each of these structures comes with some specific set
of features. The need or the stance of the client helps in clarifying what is the most specific
business structure for them. The office has recently witnessed the visit of three adult members of
same family. They are Greta, Mariana and Ted. They have concerns regarding which type of
business structure they need to finalize for starting their business. Even though Ted and Mariana
favour formation of a partnership, Great wants to opt for a company structure of business. This
report covers a brief summary on the queries raised by the clients and puts forth the answer to all
their concerns. The report would show how Ted and Mariana have a correct approach by
favouring a partnership form for their business. The legal reasons to support this notion have
been presented for consideration of the supervising partner to show that the advice being
presented to the clients is appropriate.
Comparison of business structures
The key focus of this advice for the client is on two business structures, i.e. partnership
and company. This is because these are the only two options that are being considered by the
clients at present and they have raised queries regarding these structures only.