Business is the most significant concern in our daily life, principally with the movement of globalization and the ever-increasing competitions. Business includes a diversity of things, such as the category of business organizations and the debtors’ fortification. The type of business is very essential to the company, so we ought to choose the right type in accord with their purposes. The aim of this information is to get an excellent understanding of the type of business organizations which are apt for the purposes of three cases and the 1974 Consumer Credit Act. business organizations


business organizations
business organizations


The type of business organizations

Based on what I cultured in lessons and a comprehensively reading of the relevant cases, I establish there are quite lot types of business organizations, for example, the partnership business, the listed company, and the limited liability company. The stratagem for me to analyze these cases is first to find which type will be more appropriate for their purposes, and then point out the advantages as well as disadvantages combined with the cases. business organizations


According to the Partnership Enterprise Law(2006), a meaning of a partnership was given to mean a business organization which persons make a contract, in a spirit of collaboration, intends to contribute by combining possessions, knowledge or activities; familiar manage and share its profits and risks. That is to say, the partnership ought to base on a contract which plans to common manage, share earnings and the risks. As to Prof. Ndukaku, in my view, limited partnership business is mainly suitable for his purpose because the limited partnership has the following advantages. business organizations

Primary, it has no prerequisite on the minimum registered capital, this will not cost so numerous burdens on the partners at the beginning and the partners can withdraw their contributions with the consent of other partners. Subsequent, it has a well-built personal nature; namely, the partners are well-known of each other or reciprocated trusting, this will be of great help in common management. The partnership is fashioned by two or more persons, so the partners in the partnership more often than not have a good relationship, for example, friends, relatives or workmates. Based on personal nature, if the partners are not in synchronization with each other, they can finish the partnership whenever they reach the agreement. Third, the wide-ranging partners are share equally in both conscientiousness and liability. Just, in this case, Prof Ndukaku wishes to set up a small grocery shop, considering the scale of the grocery shop, so I suggest Prof Ndukaku should use partnership, for it has no requirement on the bare minimum registered capital. What’s more, he wants to run this shop with three of his paramount friends, this form can make them common manage, share earnings and the risks. business organizations

On the other hand, there are several disadvantages that the partnership has. For instance, the partnership must undertake an obligation of stringent liability to third parties wronged by the partnership, if the assets of the partnership cannot give off the debts; the partners should make use of their own properties to pay off. Additionally, each general partner is deemed the agent of the partnership. Therefore, if that partner is apparently carrying on partnership business, all general partners can be held legally responsible for his dealings with third persons. business organizations


A public company, according to the standard understanding, is a company that sells its securities to the wide-ranging public, characteristically through a stock exchange, or through the market, makers working in over the counter markets. It is able to raise funds and capital through the sale of its securities, namely it is easy for a public company to acquire large amounts of capital for further growth, and this is the reason why publicly traded corporations are so significant. And the public corporation has sound organizations and internal management rules and regulations, these offer the public company an effective and homogeneous operation. business organizations


A limited company is that in which the legal responsibility of the members or subscribers of the company is limited to only what they have invested or guaranteed to the company. It is a form of enterprise that blends rudiments of partnership and corporate structures. Just according to Keating (1992), the first limited liability company act came out in 1977 which provided the organization and the rule of the limited liability company. Register capital completely by all partners combined and contributive. The limited company requires much fewer administrative paperwork and record keeping than a company, it will be work-efficiency and cost-saving. The shareholders in the limited company carry out limited liability to the company’s debts, this will efficiently protect the interests of the shareholders. business organizations

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