1102AFE Lecture Notes - Lecture 2: Sole Proprietorship, Limited Liability, Legal Personality
Document Summary
A business is an entity or organisation that engages in the trading of good and or services. All forms of businesses are a separate accounting entity. Business owned and operated by one person for profit. Full control of assets and business directions. Minimal regulations > no act governs sole traders, no particular reporting requirements, no extensive costs off set-up. Limited life > restricted to the period during which the owner continues to operate the business. Disadvantages: unlimited liability > owner is personally liable for the debts and obligations. Two or more persons carrying on a business with a view to profit. Mutual agency > each partner is responsible for the actions of the other partners. Numbers are limited normally 20 partners are the maximum. The governing act for this is the partnership act 1891 (qld) this directs the activities and rights of partners. Issues not covered by the partnership agreements will be governed by the.
