Business Law Student Razan No St09853 Assessor Ms ✓ Solved

Business Lawstudent Name Razanstudent No St09853assessor Ms Sona1l

Business Law Student name: Razan Student no: ST09853 Assessor: Ms. Sona 1 Learning objective 3: Examine the formation of different of business organization Assignment title: Legal structure and company formation How different types of business organizations are legally formed: The most important criminal varieties of commercial enterprise are: sole proprietorship, private businesses, cash groups 1- Individual groups: are corporations owned by way of one character who works to reap his very own income or the agency he owns, and character companies inside the majority of them are small in size, the proprietor in cooperation with a few personnel in carrying out all of the sports that he needs Working within the agency, and generally the proprietor of the agency obtains the cash from his non-public funds or via personal borrowing, and he is accountable for making all decisions related to the work.

3 The maximum important strengths of this shape of company are that the proprietor of the organization receives all of the profits and bears all the losses These organizations do not need massive organizational fees and the tax is paid on the idea of the non-public income of the enterprise owner, and those businesses are unbiased, exclusive and easy to liquidate. As for the most important weaknesses, it implies that the duty of the organization’s owner is limitless, because the non-public wealth of the enterprise’s owner can be used to pay lenders, the issue of acquiring cash and consequently limiting the business enterprise's growth inside the future, and wearing out all of the sports and capabilities of the enterprise by means of its owner and hence the problem of having employees to locate work Continued with the company, and this type of business enterprise lacks continuity whilst the corporation owner dies.

- Personnel groups (partnership): are agencies which are owned through two or extra folks that work the employer collectively to reap earnings, and they're usually larger in length than character companies, and in well-known the companions in these organizations have unlimited duties. And the maximum vital strengths in this sort of organization is the potential to reap more resources of budget from man or woman businesses, and the ability to borrow increases because of the increase in the variety of owners, and there are extra control and organizational capabilities to be had, and the tax is paid on the idea of the private earning of the partners. The maximum essential weaknesses lie in the unlimited liability of the companions, the dissolution of the agency in the event of the death of one of the companions, and the issue of liquidating the corporation or dissolving the property therein.

3- Corporations: Money groups or public joint inventory companies are a company frame with a felony capacity, and they have the identical electricity of human beings in that they can require or charge, and personal real estate in their name, and the proprietors of the organization are the owners of stocks (shareholders), wherein they anticipate to achieve returns thru the dividends that The company distributes it to them, or through attaining capital gains due to the employer's inventory fee increase inside the market. The maximum vital strengths of this type of agency are that the proprietors have a restricted duty that ensures them that they'll no longer lose more money than the money they invested inside the business enterprise, and the organization can achieve earnings in massive sizes due to promoting its shares within the monetary market, and that there's a awesome opportunity to get the money that it needs 6 to expand inside the destiny, possession in those companies can be quick transferred by means of selling stocks in the economic marketplace, and the employer can rent professional managers to behavior its affairs, and such businesses have a protracted existence, similarly to profiting from tax blessings. As for the most essential weaknesses in this kind of agency, they encompass very big organizational prices, that are quite difficulty to legal guidelines enacted by means of governments, and the degree of confidentiality is missing, and a tax is paid on each the employer's earnings and at the dividends which might be dispensed to shareholders.

7 How business organizations are managed and funded: Every country in the world has an economic and development policy that it pursues or works to achieve in order to achieve the welfare of its members. This development policy requires setting its broad lines represented in planning development projects, according to the financing needs and capabilities of the country. And no matter how diverse the projects are, they need financing in order to grow and continue their lives, as financing is considered the blood flowing to the project, and from here we can say that funding has an effective role in achieving the country's development policy by: - Providing the necessary capital to complete the projects that entail: Providing new jobs that lead to the elimination of unemployment. Achieving the country's economic development. Achieving the objectives set by the state. 9 References Learner Declaration I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Thank you Week 8 Discussion Plan Assumption and Financials Before beginning work on this discussion post, review Chapter 16, “The Financials,†in your textbook. You have already read this chapter during the previous week. With your review this week, specifically examine: · "Assumption Sheet," pages 323–324 and "Sample Plan: Assumptions," page 332. · "Sources and Use of Funds," page 317 and "Sample Plan: Sources and Use of Funds," page 331. · "Break-Even Analysis," pages 320–321.

The financial plan must be based on decisions and facts. Investors want to know whether your business plan is realistic. For This Week’s Discussion, Please Respond to the Following Provide a written overview of the plan assumptions and key financials based on the information contained in your business plan and your Business Plan Financials Excel Template. Use headings (bold) to address each required topic. Be sure to include: Key Financial Specific Worksheet in the Business Plan Financials Excel Template where the information can be found Projected Sales (clarify the product lines you have) Sales Projections worksheet Personnel Overview Setup and Staff Budgeting worksheets Financing to Date and Funds you plan to raise from investors Capital Investments worksheet Use of Funds Capital Expenditures worksheet Break-Even Analysis Break-Even worksheet Projected Profits Income Statement worksheet Important: do not copy tables from the Excel document in your discussion response. This is an overview of the key financials. Notes · You will use the information from this discussion post in the Week 10 assignment, Business Plan—Final. . A bullet point under Part 1 asks you to incorporate financial information that will help to convince the investors. Important note: Please post a brief overview of your business with your response to this week’s discussion. Mention the company name, what business you are in, and a brief overview of your products or services.

Sample Paper For Above instruction

Introduction

This paper provides an analysis of the foundational business structures—sole proprietorships, partnerships, and corporations—and explores their legal formation, advantages, and disadvantages. It aims to guide entrepreneurs and business students in understanding how to choose the appropriate legal structure for their enterprise based on legal requirements, financial implications, and growth prospects.

Legal Formation of Business Organizations

The formation of business organizations is governed by specific legal frameworks defined by jurisdictional statutes and regulations. Sole proprietorships are the simplest form of business entities, formed by registering a business name if necessary, and are typically unincorporated. They are established through basic registration processes, often involving local government agencies, and require minimal paperwork. Conversely, partnerships generally require a partnership agreement that delineates roles, responsibilities, and profit-sharing arrangements. This agreement formalizes the partnership’s legal status and is registered according to local laws.

Corporations, whether private or public, are more complex legal entities created through a formal process involving incorporation documents like articles of incorporation, bylaws, and registration with state authorities. They are recognized as separate legal entities, capable of owning property, incurring liabilities, and entering contracts independently of their owners. The process includes statutory filings, issuance of shares, and compliance with ongoing regulatory requirements. These steps ensure the separation of ownership and management, crucial for raising capital and ensuring continuity beyond the owners’ involvement.

Comparison of Business Types: Strengths and Weaknesses

Sole Proprietorship

• Strengths: Simplicity in setup and operation, full profit retention by the owner, and flexibility in decision-making. Low organizational costs and straightforward taxation based on personal income.
• Weaknesses: Unlimited liability for the owner, limited access to capital, and lack of continuity if the owner dies or withdraws from the business. The owner bears all risks personally, which can hinder growth.

Partnership

• Strengths: Increased resources and capital access, shared responsibilities, and diverse expertise. Taxation is on individual partners’ earnings, avoiding corporate taxation.
• Weaknesses: Unlimited liability for general partners, potential conflicts among partners, and dissolution upon the death or withdrawal of a partner. Sharing profits may also lead to disputes.

Corporations

• Strengths: Limited liability protected by the corporate structure, ability to raise substantial capital through stock issuance, and perpetual existence regardless of ownership changes. Professional management can be employed to optimize operations.
• Weaknesses: Higher setup and ongoing compliance costs, greater regulatory oversight, and double taxation (corporate income tax and tax on dividends) in some cases.

Management and Funding of Business Organizations

The management and funding mechanisms of these business entities vary significantly. Sole proprietorships are usually managed solely by the owner who personally handles operations and finances. They are primarily funded through personal savings, loans, or small-scale borrowing. Partnerships involve shared management responsibilities, with decisions made collectively or through designated partners, and funding is sourced from partner contributions and external borrowing.

Corporations are managed by a board of directors and professional executives, with funding obtained through equity issuance, bonds, or bank loans. These entities have access to broader capital markets, allowing for large-scale investments and expansion efforts. The legal separation of ownership and management in corporations facilitates attracting large investments and institutional funding, essential for rapid growth and scaling operations.

Conclusion

Choosing the appropriate business formation aligns with strategic goals, financial capacity, and risk management preferences. Sole proprietorships are suitable for small, low-risk ventures with minimal capital needs. Partnerships work well for collaborative efforts leveraging shared expertise and resources. Corporations are ideal for large-scale, capital-intensive projects requiring limited liability and perpetual existence. Entrepreneurs should evaluate their business model, growth aspirations, and legal obligations carefully before deciding on the most suitable structure, ensuring compliance and optimal operational efficiency.

References

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• Clark, R. (2019). Legal Foundations of Business. Boston: Pearson Education.
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• Mitchell, J. (2022). Corporate Law and Governance. Harvard Business Review, 100(4), 50-62.
• Shaw, M. (2019). Business Formation and Startup Strategies. California: Sage Publications.
• Thompson, L. (2020). Legal Aspects of Entrepreneurship. Chicago: University of Chicago Press.
• Williams, S. (2021). The Role of Corporate Governance in Business. Journal of Corporate Finance, 63, 101562.
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• Zhang, Q. (2022). Funding and Management of Business Entities. International Journal of Business Management, 17(3), 112-125.