separate legal personality comes from the introduction of incorporation. Incorporation of a company is established when the company submits all of the relevant documents to the registrar‚ which‚ if approved; will result in the issue of an incorporation certificate‚ acting as conclusive evidence of its incorporation. The requirement for a company to have a separate legal entity is forever scrutinized by certain legal professionals‚ however this is an essential factor to ensure all of the legal liability
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a company grows it may become necessary to change the businesses’ entity and the way in which it conducts business. ACME Fireworks has received inquiries from several large retailers that will enable the business to expand. In order to accommodate this expansion‚ ACME must consider hiring more employees. The owner is concerned about his personal liability should the company fall short of funds. In order to determine which entity best suits the company’s needs‚ we must first review all the risks
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satisfy the debts‚ and if this is insufficient you may be declared bankrupt. An undercharged bankrupt is forbidden to start another business or to become a director of a Private/Public limited company. 2. Legal Entity/Status or Recognition A private limited company is a legal entity‚ a juristic person established under the Act. It has its existence separate from its directors and members. Private limited company status enables you to be taken more seriously than a
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responsible for all aspects of the business. The owner is personally responsible for all debts of the business‚ even in excess of the amount invested. The business and its owner are thus considered the same entity. The advantages of a sole proprietorship include: a. Low start up costs‚ as legal and filing fees are at a minimum. However‚ many states and cities require a filing with county clerk. b. Greatest freedom from regulation and paperwork. c. Owner is in direct control‚ with no interference
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PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 2. In choosing a form of business organization for a new enterprise‚ important factors include the ability to raise capital. ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking 3. A sole proprietor is free to make any decision he or she wishes concerning the business. ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 4. The intent to associate is a key element of a partnership
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proprietorship is an excellent concept for a small business. Income that the company makes goes either back into the company or into the owner’s pocket. This type of business is easy to start up and operate with a good business plan (Choosing the Legal Form of Ownership for Your Business‚ 2012). The simplicity of this type of business organization can be appealing to newcomers in the business world. The primary disadvantage of a sole proprietorship is that all costs or debts incurred by the business
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Medicaire (hospital insurance) CONCEPT REVIEW/ SOLE PROPRIETORS Definition: A sole proprietorship is the simplest form of business. The owner of the business‚ the sole proprietor‚ is the business. There’s no separate legal entity. Formation: There are few‚ if any‚ legal formalities required to form a sole proprietorship. If the sole proprietor hires employees‚ operates a regulated business‚ uses a trade name‚ or does business in other states‚ there may be laws that impose duties or
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Introduction This essay will examine the legal standing of the doctrine of ’separate legal personality ’ as it was developed in Salomon v. Salomon & Co Ltd [1897] AC 22. Even though this doctrine is the stone head of the English company common law‚ the courts introduced several exceptions which undermined the ’veil of incorporation ’. The exceptions were firstly introduced in the mid-60s by Lord Denning in Littlewoods Mail Order Stores Ltd. V IRC [1969]‚ and allowed the court to lift the veil
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allows us to identify uniquely an entity in the entity set. A superkey may contain extraneous attributes. If K is a superkey‚ then so is any superset of K. A superkey for which no proper subset is also a superkey is called a candidate key. It is possible that several distinct sets of attributes could serve as candidate keys. The primary key is one of the candidate keys that is chosen by the database designer as the principal means of identifying entities within an entity set. 2.2 Construct an E-R diagram
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The capacity of both parties to agree to draw up a contract to fit both their views and come to an agreement. That Acme Fireworks has the product and the partner will provide the skilled labor of the firework display. Then finally making it into a legal contract. The lawful purpose of creating a contract of their business in labor‚ shares‚ debt‚ and
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