Course work business law environment Essay Example | Topics and Well Written Essays - 2000 words

Course work business law environment - Essay Example The above legal forms of doing business offer different benefits, rights as well as obligations to the owners of such businesses and as such as one moves from one form of business to another, the extent and nature of the rights and obligations also change. For example, a sole proprietor is personally liable for all the liability of the business running by him and as such the personal property of the sole proprietor is therefore also subject to liquidation if business fails and files for bankruptcy. Similar, in partnership, the partners are subject to personal liability also however as one move up towards formation of a company either a private or a public, the nature and extent of liability start to change. The shareholders of the private and public limited companies are only liable to the extent of their individual shareholding within the business. It is also important to note that in public limited companies, the function of management and ownership are two separate functions i.e. owners and the managers of the business are separate from each other. This paper will prepare a written analysis of a problem which identifies relevant legal principles; identify remedies and obligations appropriate to the circumstances of a legal situation presented in the given question. From the facts provided in the question, it is clear that the apparent form of the business is a sole proprietorship with Ivor being the legal owner of the business and Andrew as the employee of the new business. Sole proprietorship is considered as the oldest and common form of business formation where an individual can form a business without going into too much detail about the legal consequences of the business formation. Typically a Sole Proprietorship is owned and managed by single person and unlike limited company; there is no separation between the ownership as well as the management of the business. This is also the most distinguished character of the