BTF1010 Lecture Notes - Lecture 10: Sole Proprietorship, Limited Liability, Legal Fiction
18 Oct 2018
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Btf1010 week 10 lecture the law of business organisations: overview of common business organisation / the concept of agency [15. 10, age(cid:374)(cid:272)(cid:455) = (cid:862)a(cid:272)ti(cid:374)g through a(cid:374)other perso(cid:374)(cid:863) Agent acts with 3rd parties on behalf of principal: overview: business organisation types [pt5. 10-. 60, there are 4 standard types -- partnerships and corporations are dominant, focus on the choices and the central feature of each: Trust (cid:858)holding property on another(cid:859)s behalf(cid:859) Partnership (cid:858)sharing the pain and the gain(cid:859) Corporation (cid:858)the legal fiction that rules the business world(cid:859) Ease of formation and dissolution, low start up and recurrent costs. Sole traders act through agents (in the same way as ordinary people do) Two or more people can combine their assets or abilities; easy to establish; better able to borrow than individuals; partners own and control. Unlimited liability of the partners; less flexibility of membership; limited life. Partners are both agents and principals of each other.
