Size of these can be small or bigdepending upon the number of employees or the area in which they are operating. Profits generated will be going all to the owner because he is responsible for all the business losses and liabilities. Once the name of sole trader business is registered it will prevent other people from using it.Person interested in starting a business can be form sole trader business as it does not need legal formalities.
#Legal aspects of business akhileshwar pathak pdf registration
For starting a business he needs a licence and registration process of this is not that complicated and is not that expensive. Any financial activity which is commenced by a sole trader will trade under the name selected by the himself and or on his own name.Īssets are considered as the personal of the owner. Owner is responsible for the supply of the required funds to run the business (Horrigan, 2010). There is no legal difference between the owner and the business. It is one of the most simple form of business organization and is defined as a business owned and run by a single person and are also called as sole proprietorship. Sole traders are one of the types of businesses. On way of classify companies are based on their ownership. Task 1 Sole Traderīusinesses organizations are distinguished in many ways depending upon the criteria used. Directors duties are the laws which gives power to the board of directors to anonymously takes decision in the company. Director is a person who guides and govern a company or a field of a company.
Comparison of the companies on the basis of legal business forms are included in these. Such kind of laws specify an organization that how they will work with their partners and contractors (Padhi, 2012). So while initiating with a new company or business the owner should go through the legal aspects which could impact the firm in the future. Any frauds or cheating will be considered as violation of laws and certain action to the company, its owners, board of directors will be taken.
and how they will be governed and what measures and criteria will be followed (Pathak, 2013). Normally these rules define shareholders, employees, creditors, consumers, taxation, partnerships, company structure and etc. These are not the rules which a company make these are external laws made by the government of the country to regulate a firm and asks them to follow those laws. Introduction to Legal Aspects of BusinessĮvery business is governed with some sort of laws and ethics which are need to be followed by a organization.
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