Legal entities

corporate legal personality and limited liability. The existence of these ‘corporate groups’, with subsidiary companies being heavily controlled by their parent companies, have necessitated interpretations and applications of existing corporate legal principles to this novel context, even in case of the basic tenets of corporate law. The circumstances associated with corporate veil piercing, through detailed consideration of conditions to treating holding and subsidiary companies as one legal unit, with

the previous edition of the Test Bank. = A question included in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A sole proprietor does not own the entire business. ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 2. In choosing a form of business organization for a new enterprise, impor­tant factors include the ability to raise capital. ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking 3. A sole proprietor is free to

An Overview of Financial Management and the Financial Environment Matthew Ellsworth  Abstract Financial Management usually involves the process of planning, organizing and controlling the financial activities of any enterprise to achieve the goals and objectives in financial terms of that enterprise. The main objectives of financial management would be to create wealth for the business in terms of movable cash for the organization and to ensure that the target return in investments is meet at

UK Company Law. Its legal structure entails a unitary national statute which is the Corporations Act 2001. This particular statute is under the authority of the Australian Securities and Investments Commission (ASIC). However, all corporation legislations are reported to the Treasurer with references being made to the judgement of the courts as is the case in the United Kingdom. In the Australian context, the term "corporation" is defined as a totally separate legal entity and one that is created

have Sole proprietorship, Partnership, Limited Liability Corporation (LLC), and a Corporation. A sole proprietorship is business that is unincorporated that is owned by one individual. A partnership is a business ran by two or more people, it is a legal entity where they join to carry on a trade or business. Limited Liability Corporation (LLC) is a structure that

Sports Direct Sports direct is a sports equipment company who purchase and distribute products to consumers, they are a Public limited company meaning they have a structure, this structure is ; Senior Management- These are a team of individuals who are at the highest level of management, they have the day-to-day task of managing the organization. Would make decisions on whether they are going to cut back on certain products, purchasing and developing new stores, salary scales in the stores, ensuring

Business Ownership There are three different forms of business ownership, the Sole Proprietorship, the Partnership, and the Corporation. Each of these businesses have major advantages and disadvantages. The sole proprietorship is a business which is owned and managed by one individual. Some of its advantages are, the ease of formation, its management control, and its distribution of profits. Some of the disadvantages are, its unlimited liability, the lack of continuity, the capital requirements

is a term that refers to the concept of treating a corporation as a separate legal entity from its shareholders and thus bestowing upon it separate rights, obligations and liabilities. In the landmark case of Salomon v Salomon, the court stated that the liability of company shareholders is limited only to the extent of their capital contributions. The court also explained that since companies are separate legal entities from shareholders, they are separately liable for debt and obligatory responsibilities

pierce the corporate veil. In the long run, it is submitted that this would produce a fairer outcome for the parties involved as judges would be able to apply the principles developed to individual cases before making a decision. Due to the separate legal personality of companies, a company can own shares in other companies. This leads to the formation of corporate groups which can be made up of over 100 companies and are often owned by a single parent company . The corporate veil was introduced to

Australian securities and investment commission and Corporation Act Pty. Ltd. must follow a lot of rules and regulations. (3) The main advantages & disadvantages for Josh Luke Ltd. are as follows: Advantages: • Separate Entity: Under Ltd. companies are solely separate legal entity from the respected owners. • Advantages of Tax: 21% of tax rate applies only to the profits of a company. • Control: In Limited companies, directors are also the shareholders so decision taking power are with them, taking