LAWS1100 Lecture Notes - Lecture 12: Knowledge Base, Corporations Act 2001, Sole Proprietorship
Document Summary
Advantages: profit is not shared, no outside interference, easy to establish and manage, low-cost and no formality, confidential, personal and high degree of control, speedy decision making. Business" is defined as including trade, occupation or profession : see: s3 (pa) Carrying on": there must be some continuity or repetition of trading activities : single transaction/one-off project is usually not a partnership, see: smith v anderson [1880] If a loss is expected to be made in the short term and/or a loss has in fact been made, it is still a partnership: see: minter v minter [2000] If a business is carried together for non-profit purpose, is it likely that the business is an unincorporated association rather than a partnership. Advantages: ease of formation, relatively low-cost, flexibility of structure, combine skill and expertise, have the resources of a number of persons, greater access to finances. In return, trustees can have right to remuneration and be indemnified for expenses.
