SEMINAR 2 IVLE.ppt - BSP 1702\/1004 \u2013 LEGAL ENVORONMENT OF BUSINESS Semester 2 2018\/19 Business Organisations Seminar 2 Part 1 CONTENTS 1 Learning

BSP 1702/1004 – LEGAL ENVORONMENT OF BUSINESS Semester 2, 2018/19 Business Organisations Seminar 2 Part 1

CONTENTS 1 Learning Objectives 2 Which Business Organisation? Sole Trader. General Partnership. Limited Liability Partnership. Limited Partnership. Joint Venture 3 Company/Corporation. Private and Public Companies. Holding and Subsidiary Company 4 Learning Outcomes 5 Readings

 How to choose the most suitable legal structure for your business  To know the legal differences between the various types of business organisations 1

2. Business Organisations: Which? • Should the entrepreneur “go it alone”? Absolute authority and total responsibility • Should a partnership be formed? Simple to form and operate but involves sharing management powers, duties and profits • Should a company/ corporation be formed? Offers a number of advantages e.g. limited liability but heavily regulated

Things to know when starting a business

2.1 Types of Business Organisations 1. Sole Traders/Sole Proprietors 2. General Partnerships 3. Limited liability Partnerships (LLP) 4. Limited Partnerships (LP) 5. Joint Ventures (JV) 6. Corporations – Private or Public Companies 7. <Part 1

. sg ACCOUNTING & CORPORATE REGULATORY AUTHORITY - BUSINESS REGISTRATION idesChaptersDetails.aspx?pageid=1755&contentid=1757 : watch video and download table summary pdf on different forms of business organisations

2.2 Sole Trader • Register under Business Names Registration Act (certain businesses exempted) •

Sole Trader • No partners or company structure • Owner can be one person or one company • Full control of management • Easiest & cheapest way of structuring a business • Total privacy. Non-disclosure of profits to public • Easy to close. Inform ACRA by filing notice

• Low capital • Tremendous personal effort • No separate legal entity • Solely responsible for management and risks • Liable for all business debts • Takes all profits • Disruption of business on retirement, death