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Legal Aspects Of Business (PDF)

   

Added on  2020-10-22

10 Pages3121 Words479 Views
LEGAL ASPECTS OF BUSINESS

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Critically discussing the main features of two forms of business organisations such asunlimited partnership and private limited company...............................................................1TASK 2...........................................................................................................................................3Critically discussing the duties of company’s director...........................................................3CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8

INTRODUCTIONUK company law regulates and monitors the functioning of business units formed underCompanies Act 2006. In UK, business units must comply with the rules and regulationsmentioned in the concerned law (McLaughlin, 2015). As per company’s constitution, Board ofdirectors possesses power in relation to managing business operations and taking decisions onthe behalf of stakeholders. In this, report will provide deeper insight about the features ofdifferent types of business organizations according to company law. Further, report also presentsduties which company’s director need to consider while carry out business activities andfunctions. TASK 1Critically discussing the main features of two forms of business organisations such as unlimitedpartnership and private limited companyUnlimited partnershipUnlimited partnership firms are such entities that have at least two persons as partners inthe business. Both these partners are responsible for decision making of the company. Theyjointly are liable for debts of the organization. Unlimited partnership firms have to follow simpleregistration process (Ferran and Ho, 2014). There is no specific capital requirements. It is thetype of business in which all partners contribute in the daily operational process. They all discussabout the company and take mutual decision through which organization can gain success andcan enhance its profitability. Each partners are equally responsible and have rights to makedecisions for the welfare of business unit. In unlimited partnership firm liabilities, contribution and responsibility of each partner isdistributed equally. The partnership act revels that it is essential that unlimited partnership firmhas at least 2 partners and maximum number of partners can be unlimited (Plaza, 2014). Eachperson has unlimited liability in the business unit as per their investment and shareholding inorganization. A contract is build between partners where they invest capital in the business. Onthe bases of their investment in the firm profit or loss ratio is being calculated and decided. Partnership act 1958 define that partnership is the contract between two or more peoplewhere they agree to work together and share their profit and loss in business. Features ofunlimited partnership firm:1

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