Advantages And Disadvantages Of Partnership In Australia

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Question 1:
There are a couple types of business structure in Australia. Businesses in Australia are run by Sole traders, Partnerships, Companies and trading trust. However, each kind of businesses has its own legal rules, purpose and benefits . With organizations the statutory provision is contained in the relevant companies’ legislation . With partnerships the relevant law is contained in the partnership Act in each of the jurisdictions .I will discuss only the partnerships and the companies in term of its business structure, the advantages and disadvantages by conducting business of both types and which one could be preferable to another structure.
Partnership:
Partnership Act illustrates a partnership as an association of individuals carrying …show more content…

Partnership is generally straightforward and need low costs to be framed it just require an understanding between the parties. All partners evolve in the administration and making the decision as they all have the right to help in any decision. As they are a number of partners that implies they have a much greater source of funds than a sole trader. On the other hand, the Disadvantages of partnership are that it doesn 't have a legitimate identity of its own. The survival issues, as the partnership will be broken up in light of the death of the partner or regardless of the fact that the partner went insolvency. Endless obligations, where the debts in partnership might be taken generally as it could be taken from their own assets to settle the …show more content…

Bialkower, Richard J. Morgan, 1984, pp. 15-18) mentioned in their book the advantages and disadvantages of Company’s business structure the Advantages Continuity of existence means the company has long life as it stop to exist when it is deregistered. This permit the directors and shareholders continue changes as time passes by. A broad source of fund as the company is generally vast in capital, therefore it is much easier to get funding. The limited liability concept means that the shareholders are constrained to just unpaid (if any) shares of the company and the lenders can 't go to the shareholders or directors personal assets to fulfil the obligation if there has the company went insolvency . From the levy perspective, the company is taxed at a flat rate and the organization is the person who pays the tax. On the other hand, Companies could be extravagant and complicated to framed as tit should be registered with ASIC and send a financial report to it and that is time consuming and costly. By the by, if the business is doing incredible and has development potential, the expenses and disadvantages of the company will be surpassed by the

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