Comercial law2000 words

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Answered Same DayJan 18, 2021LAW2000Torrens University Australia

Answer To: Comercial law2000 words

Kushal answered on Jan 21 2021
113 Votes
Dear Michael and Sunny,
Hope you are doing well!
I am excited to help you out with streamlining the commercial law requirements under the Australian government regulations. I would be more than happy to advise you guys on what business form to choose, what will be the tax and legal implications will be, what commerci
al law requirements we need to fulfil in order to ensure that it is easy for you to conduct this business in the most efficient manner.
To give you a brief idea about the college that is located on the 5ht Street, Balanse area, Brisbane. Since you have already decided to go ahead with buying the college, I will be more than happy to help you out so that complete transition along with all the procedures and legal requirements are being taken care of.
Form of the organization – - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Broadly organization form can be divided into three structures.
Sole Proprietorship
Here is a brief for you guys to under the advantages and disadvantages for the different structures used by businesses.
1. Sole Proprietorship – If a business or the firm is owned by an individual and no partnership is formed as such then it is called the sole Proprietorship.
a. Advantages –
i. All profits belong to you and hence, all taxes should also be played by the sole proprietor
ii. No need to divulge any information about the long term or the short term goals in any public domain
iii. More autonomy as far as the direction of the organization is concerned
b. Disadvantages-
i. Not limited liability and the owner has the entire risk of the taxes, financial liabilities , operational and financial risks
ii. Individual will be responsible for all the taxes and the incidence of the taxes could not be put on someone else.
iii. The taxes are at the individual level
2. Partnership – When a business is owned by more than one person then it is called the partnership and all the responsibilities, right and duties as well as the percentage of the ownership is mentioned.
a. Advantages –
i. Limited liability to the partners. Only one general partner has the unlimited liability in the firm.
ii. Strategic directions by multiple stakeholders and hence, better decision making
iii. These directions can help company share the future and give a clear direction as well
b. Disadvantages-
i. Multiple opinions and hence, conflicts can arise and this is the reason why conflict resolution mechanism should be in place to understand and estimate the forecasts and demands.
ii. Taxes to the individuals as well the business
3. Corporation – Multiple stakeholders and shareholders own the business and hence, it will form a corporation.
a. Advantages-
i. Limited Liability
ii. More transparency in the business due to increased scrutiny of the shareholders
iii. Alignment of the short term as well as the long term objectives of the firm.
b. Disadvantages-
i. Need to divulge the information to the all the shareholders and higher scrutiny
ii. Managers and directors might have the conflict of interests and that might lead to corporate governance issues
For the million dollar college that you are planning to buy, I would assume that the best...

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