TAILIEUCHUNG - Lecture Fundamentals of business law (6/e): Chapter 4 - Margaret Barron

Chapter 4 - Business organisations. In this chapter you should understand: the essential characteristics of sole traders, partnerships, joint ventures, associations, companies, and trusts; the legal obligations imposed on each type of business entity; the liability of the parties involved in each type of business entity;. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 4- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Business Organisations Chapter 4 4- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Introduction There are various ways that a business can be carried on. Each business structure has advantages and disadvantages that need to be considered. 4- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Definitions Sole trader—business is owned and operated by one person with all profits or losses attributed to the owner. Partnership—relationship between two to 20 persons who carry on business in common with a view to profit. Joint venture—usually a one-off enterprise, with participants receiving profits separately, based on contractual agreement. Unincorporated association—body of two or more persons, organised for a particular purpose, which may or may not include the purpose of carrying on business with a view to a profit. 4- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Definitions (cont.) Incorporated association—body of two or more persons, organised for a particular purpose, which may not include the purpose of carrying on a business with a view to a profit. Company—incorporated body created by a process called 'incorporation', regarded by law as a separate legal entity. Trust—relationship recognised by the law of equity, where a trustee holds property for a beneficiary or beneficiaries. 4- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Formation Sole trader—simple; little documentation. Partnership—partnership agreement .

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