Word Length: 500-700 words
Task Weight: 15%.
Task Requirements: The ‘Case Scenario’ on the topic of ‘Business Structures’ Assignment Topic - Case Scenario (Business Structures)
Obama and Osaka have decided to go into business together. They will be focusing on providing ‘Economical and Healthy Food’ to International Students travelling in Australia during holidays and weekends. They currently have around $150,000 in assets and intend to take out a loan of $200,000 from the OK Bank, to help establish their business. Their projected income for the first twelve months is around $150,000 but they expect that if they are able to offer high quality and reliable services, their business should be able to grow quicker than that. They are planning to attract investors to become part owners of their ‘Economical and Healthy Food’ business.
Before commencing, Obama and Osaka seek your advice as to the advantages and disadvantages of entering into different types of business.
PROVIDE ANSWERS TO THE FOLLOWING TWO QUESTIONS
Provide detailed advice and recommendations to Obama and Osaka as to the most suitable business structure for their new ‘Economical and Healthy Food’ business.
Explain the process and requirements that ‘Economical and Healthy Food’ business will have to follow in order to register the most suitable business structure for their new business.
Students are required to ‘go beyond’ the Prescribed Textbook and to use additional Library resources to support your answers.
Use of Resources
You are required to use a range of legal resources in addition to the textbooks including at least two (2) textbooks and four (4) Online Legal Resources; as supporting evidence for the arguments, analysis and discussion of the two Assignment questions.
CRITERIA USED TO GRADE THIS TASK
See Separate Marking Guide for detailed marking criteria and allocation
There are number of business structures that the Obama and Osaka can choose in operating the business. There are various advantages and disadvantages of business structure that are necessary in identifying the parties to ensure that they are selecting the most suitable business for their business. It is the memorandum of advice such as trusts, partnerships and companies that are available for Emma and Oliver. In this various rights, liabilities and duties associated with the business structures will be analyzed in this essay.
On seeing the advantages and disadvantages of the three structures it can be advised to Obama and Osaka that they can choose the partnership firm because for the economical business the Partnership will be advised to them.
It is very easy to register a partnership. The legal structure of partnership has been governed by the Partnership Act 1891 (Qld) that provides the key provisions in governing the legal structure. The term has been defined under section 5 of the Partnership Act. The partners are required to register the partnership under the provisions of these laws. The agreement of partnership can be made either in writing or orally. There are various things that are required to do for the contract of Partnership:-
If Obama and Osaka will go for company, than they have to go on the Website of ASIC. There is the form which is required to be filled according to the Corporations Act 2001. The company will be registered (Ratten, and Dana, 2015).
The provision of the trust has been provi0ded under Trusts Act 1973 (Qld). In trust there is required to mention the trustees and beneficiaries (Ratten, and Dana, 2015).