SelLecture 2 2010 - TYPES OF BUSINESS ORGANISATIONS LECTURES 2 3 Types of Business Organisations A business can be run using any of the following 5

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
TYPES OF BUSINESS ORGANISATIONS LECTURES 2 & 3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Types of Business Organisations A business can be run using any of the following 5 types of business organisations: Choosing a wrong type of organisation may affect the business and may affect the owner of the business.
Background image of page 2
SOLE PROPRIETORSHIP - PRELIMINARIES To operate a sole proprietorship, one has to register with ACRA: http://www.acra.gov.sg What typical information must be given during registration? Why does the law require registration? However, there are some limited exceptions to registration, such as in the case of taxi drivers. If you do not fall within the exceptions and you don’t register it is an offence. Registration is cheap and fast. Aside from registration , you may need to get licensing which is handled by other agencies/authorities: https://licences.business.gov.sg
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SOLE PROPRIETORSHIP - LIABILITY The sole proprietor is personally liable for the business debts and his personal assets can be seized to satisfy business debts, as there is no separation between the sole proprietor and his business. Similarly, if he has some personal debts , can the business assets be seized?
Background image of page 4
SOLE PROPRIETORSHIP - DISSOLUTION Dissolution of a sole proprietorship is generally straight forward and can be: - Voluntary or - Involuntary.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PARTNERSHIP - PRELIMINARIES The Partnership Act defines a partnership as a group of persons carrying on a business in common with a view of profit.
Background image of page 6
PARTNERSHIP - PRELIMINARIES For there to be a valid partnership, does there have to be a written agreement? The minimum number of partners is _______ and the maximum is generally 20. The registration and licensing process (if any), is the same as that for sole proprietorships.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PARTNERSHIP – LIABILITY In relation to business debts incurred by the partnership, the partners can be personally liable and their personal assets can be seized to satisfy business debts, as the partnership is not a separate legal entity. Example: - A & B are partners - Partnership Debts: $100,000 - Partnership Assets: $0 - A’s personal Assets: $150,000 - B’s personal Assets: $200,000
Background image of page 8
PARTNERSHIP – LIABILITY However, in relation to personal debts incurred by partners, can all of the partnership assets or only the debtor partner’s share, be sort after? Example: - A & B are partners - Partnership Debts: $0 - Partnership Assets: $100,000 - A’s personal Debts: $70,000 - How much of the partnership assets can be sort after by
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PARTNERSHIP - RELATION BETWEEN PARTNERS The Partnership Act provides that unless the contract provides otherwise, all partners share profits and losses/liabilities equally.
Background image of page 10
PARTNERSHIP - RELATION BETWEEN PARTNERS The Partnership Act provides that all partnership property belongs to partners . Case Example:
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/01/2011 for the course BIZAD BSP 1004 taught by Professor Ravichandran during the Spring '11 term at National University of Singapore.

Page1 / 36

SelLecture 2 2010 - TYPES OF BUSINESS ORGANISATIONS LECTURES 2 3 Types of Business Organisations A business can be run using any of the following 5

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online