The following paper under the title 'The Type of Business Structure' is a wonderful example of a business case study. The type of business structure adopted contributes much to the success of the firm. There are many types of business structures in Australia that contain both advantages and disadvantages. For the case of Mary, Jack, and Will, the best business structure to adopt is the general partnership. This the type of business where they exist the relationship between two or more people to carry on the firm incorporates the aim of making the profit.
Therefore in this type of business structure, Jack, Will, and Mary will own the business and the three shareholders will be in control of all assets and all of the profits that will be obtained from this business will jointly belong to them. Also, they will raise finance and share the contribution and risk to the business. However, this business structure is not a separate legal entity (Partnership act, 1958) Also, all of them will hold liable for their dealing with the third person. Moreover, each partner will have equal rights to participate in the control and management of the business.
The disagreement in the course of the partnership will be defined by the majority of partners, and differences of matters that are extraordinary and changes to the agreement of partnership will need all partners’ consent. Nevertheless, the agreement of partnership will provide individual members to control the business along the line of the board of the company. Besides, no one can become a business member without the agreement of other partners, though a partner may assign his losses to share or profit share and right to obtain distributions.
Also, the judgment of the partner’ s creditor may get an order charging the transferable interest of the partner to fulfill the resolution. I recommend this business structure to Jack, Will, and Mary because it simple to start. For instance, it is relatively easy to start since no much money is needed. Also, the ability to raise funds is high since both Jack, Will and Mary will contribute the money quickly to start the business. Moreover, the business’ s profit flow will be directly through the personal tax of the partners.
Besides, the prospective employees may want to join the business if given incentives as well the business structure will benefit from both Jack, Will, and Mary, who have the skills that are complementary. Moreover, there is less regulation and interference from the government as well as less need for hiring accountants, lawyers, and other consultants. Another advantage of this business structure is that it has a lot of privacy, and it has a management base that is broader. Jack, Will, and Mary need to decide whether to run the business under their names or the business name.
If they choose to execute the business under their names, they will need to register it in the Business Number of the Australian for the exclusive partnership. They also need to apply for the registration of the company to ASIC. For registration of the enterprise, ASIC need requires more than one shareholder. Also, to obtain certification, they must complete the ASIC form. Then the member will manage, administer, or deal with their properties that will be situated in Australia as legal persons.
Also, they should attend meetings of the shareholders to discuss the internal affairs or other activities.
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