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Are there criminal LittlePartners have little General partners havePartners have some Directors have many
liabilities for failing to observe various matters:Little or Someor Lots?statutory duties or liabilities some(thoughless as compared to a LLP) statutory duties or liabilities, breach of some of which may result in criminal liabilitiesstatutory duties, breachof some of which may result in criminal liabilitiesstatutory duties, breachof some of which may result in criminal liabilities Company has unlimited liablilty hencecreditors need protection Compared to LLP, C is easierto borrow money greater risks in repaylemtOrder of common types of business:Company, S, PSummary•When setting up a business organisation, there are five common types of organisations to choose from.•All types of business organisations have to be registered in one way or another. Licensing may also be required.•Unincorporated business organisations, namely sole proprietorships and partnerships, expose the owners to unlimited personal liability. The same is true of general partners in a limited partnership.•Incorporated business organisations such as companies and limited liability partnerships generally do not expose the owners to unlimited personal liability. But to balance this, the law imposes more duties and liabilities in relation to the running of these types of organisations, breach of which may result in criminal liabilities. Further, it is comparatively more complex and expensive to set up and dissolve such organisations. •The best type of organisation to choose depends on the circumstances/needs and choosing the wrong type of organisation may affect the business and may affect the owner of the business.
JOINT VENTURE-Most common type in certain industries such as construction, property development-Involves 2 parties coming together for a particular venture or purpose-May set up company, LLP or LP to carry out the activities of the venture rights and liabilities ofthe parties are governed by Company Act, LLP Act or LP Act respectively 1 party would be deemed to be an agent to the other-It is also possible for the parties concerned to enter into a purely contractual relationship with each other without intending to set up C, LLP, LP or P rights and liabilities are governed by contract 1 party would NOTbe deemed to be an agent to the other--
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Business Law, Corporation, Types of business entity, Types of companies, Legal entities