College Of Banking And Financial Studies Presentation Oralvi

College Of Banking And Financial Studiespresentation Oralviva Brief

College of Banking and Financial Studies Presentation (oral/viva) Brief – BTEC Higher National Diploma in Business (Level 5) Student Name /ID Number Unit Number and Title 7, Business Law (H/617/0736) Academic Year Spring Unit Assessor Ms. Joyce & Ms. Sona Lolu I. V. Name LIVT Assignment Title Legal structures and company formation Date of issue: Date of presentation: Last date for submitting ppt. in turnitin Presentation Format The presentation slides and detailed speaker notes should be submitted as one copy in to the Turnitin in the format provided by the department.

Students are required to make effective use of headings, bullet points and subsections as appropriate. Research should be referenced using the Harvard referencing system. A bibliography should be provided using the Harvard referencing system. The recommended length is 1500–2000 words, including speaker notes, although students will not be penalized for exceeding 2000 words. The assessment will also observe over and above the command verbs, the following transferable skills.

1. Critical thinking 2. Reasoning 3. Creativity Unit Learning Outcome: LO3 Examine the formation of different types of business organisations Pass Merit Distinction P4 Explore how different types of business organisations are legally formed. M3 Assess the advantages and disadvantages of the formation of different types of business organisations. D2 Critically review and evaluate the types of business organisations. P5 Explain how business organisations are managed and funded. The Scenario Task 1: Hilal and Sayed are friends. Hilal has recently graduated with an MBA from the Strathclyde University (CBFS- Oman) and Sayed who was employed as manager in Al Saida LLC has recently resigned. The two friends have now decided to set up a bakery business in Bousher, Oman. Hilal and Sayed have no knowledge about the different business structures they can choose for their proposed venture. As they have extremely limited funds at their disposal, they will need to know what options they have, to fund their business. After contemplating for several months, they have now approached CCL Consultants a reputed law firm in Oman. As one of the consultants in CCL advise Hilal and Sayed on how to proceed with their plan. Your advice should also explain how they can finance and manage their proposed business. You must critically review and evaluate types of business organizations by assessing their advantages and disadvantages.

Paper For Above instruction

Establishing a business involves choosing the appropriate legal structure that aligns with the founders' goals, resources, and operational considerations. For Hilal and Sayed, two viable options are a Limited Liability Company (LLC) and a General Partnership. Each structure has its own legal formation requirements, advantages, disadvantages, and implications for funding and management.

Legal Formation of Business Structures

Limited Liability Company (LLC): An LLC in Oman is a distinct legal entity, which limits the liability of its owners (members) to their capital contribution (Oman Chamber of Commerce and Industry, 2022). To form an LLC, the founders need to register with the Ministry of Commerce and Industry, submit necessary documents such as the Articles of Association, and obtain a commercial registration (CR). The LLC formation process is regulated under Oman’s Commercial Companies Law, which stipulates minimum capital requirements, managerial structure, and registration procedures (Oman Ministry of Commerce, 2022).

General Partnership: A general partnership in Oman involves two or more partners conducting business collectively, with joint liability. Unlike LLCs, a partnership does not require formal registration but must adhere to the partnership agreement outlining each partner’s contributions, profit sharing, and liability (Al Maskari, 2021). The general partnership is easier to establish but exposes partners to unlimited liability.

Advantages and Disadvantages

LLC Advantages:

- Limited liability protects personal assets.

- Flexibility in management and profit distribution.

- Easier to attract investors due to legal recognition.

- Perpetual existence independent of owner's status (Deloitte, 2022).

LLC Disadvantages:

- Higher registration costs and compliance requirements.

- More complex management structure.

- Potential restrictions on foreign ownership in certain sectors (Oman Commercial Law, 2022).

General Partnership Advantages:

- Simplicity in setup and operation.

- Flexibility in management.

- Less costly registration and lower compliance burdens (Patriot Software, 2020).

Disadvantages:

- Unlimited liability exposes personal assets to business debts.

- Limited ability to raise capital.

- Dissolution upon the withdrawal or death of a partner, unless agreements specify otherwise.

Funding and Management

Funding options differ depending on the legal structure. An LLC can secure funding through personal savings, bank loans, or investment from partners or third parties. The founders can also explore government grants or venture capital if applicable (KPMG Oman, 2021). An LLC’s ability to raise capital is enhanced by its formal corporate structure, making it more attractive to external investors.

In a general partnership, funding typically comes from the partners’ personal assets, loans from banks, or contributions by the partners. Since partnerships lack a formal structure, raising funds can be more challenging, and partners are personally liable for debts (Small Business Administration, 2020).

Management of an LLC allows members to appoint managers or manage the company directly, offering flexibility (The Balance Small Business, 2020). Conversely, in a partnership, all partners generally share management responsibilities unless otherwise agreed (Peters, 2021).

Conclusion

Hilal and Sayed need to consider their specific needs, resources, and risk appetite when choosing the legal structure for their bakery. An LLC offers limited liability and easier access to funding, but with higher regulatory requirements. A general partnership is simple and inexpensive but exposes partners to unlimited liability. Based on their limited funds and desire for limited liability, establishing an LLC would be a more suitable option, provided they can meet the registration requirements and initial capital obligations.

References

• Al Maskari, M. (2021). Business Law in Oman. Oman Legal Review.
• Deloitte. (2022). Business Structures in Oman. Deloitte Oman Reports.
• KPMG Oman. (2021). Funding Sources for Small Businesses in Oman. KPMG Publications.
• Oman Chamber of Commerce and Industry. (2022). Guide to Business Registration. Oman CCI.
• Oman Ministry of Commerce. (2022). Commercial Law and Business Registration. Government of Oman.
• Patriot Software. (2020). Types of Business Partnerships. Patriot Software Articles.
• Peters, R. (2021). Management in Business Partnerships. Journal of Business Management, 15(2), 112-118.
• Small Business Administration. (2020). Types of Business Structures. SBA.gov.
• The Balance Small Business. (2020). LLC vs. Partnership: Pros and Cons. The Balance Articles.
• Oman Chamber of Commerce and Industry. (2022). Starting a Business in Oman. Oman CCI.