BUSINESS ORGANISATIONS

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BUSINESS ORGANISATIONS by Mind Map: BUSINESS ORGANISATIONS

1. PARTNERSHIP

1.1. Composes 2 or more person to run the business.

1.2. In section 2, every trade, occupation or profession.

1.3. Agree to contribute money, labor, and skills to a business.

1.4. Formed to operate concerns varying from trading firm to professional firm.

2. LIABILITY

2.1. Not a legal entity separate from its members/partner

2.2. Each partner is personally liable to outside creditors to the full extend

2.3. If a partnership is dissolved, all outside creditors must be paid in full, before the partners are entitled to a return from the partnership.

3. LEGAL ACTION

3.1. Bring an action enforcing rights of the partnership in the names of all partners.

3.2. Allow a partnership to sue and be sued inits firm's name.

3.3. The partner may sue and be sued collectively by using the name of the partnership firm.

4. SOLE PROPRIETORSHIP

4.1. One individual conduct a business alone.

4.2. Simple to form & operate because no special rules governing.

4.3. Use own resources to provide skills, labor, and other resources to conduct the business.

4.4. The business owner is personally liable for all debts incurred by the business.

5. TYPE OF BUSINESS OWNERSHIP

5.1. Sole Proprietorship

5.2. Partnership

5.3. A limited company

6. NUMBER OF PARTNER

6.1. Section 47(2) of the Partnership Act

6.2. Cannot exceed 20 of partners, because this contravenes section 14(3)(b) of the Company Act unless the partnership as one of professional.

6.3. Section 47(2) of Partnership Act

7. TYPE OF PARTNERS

7.1. Active partner

7.2. Sleeping/Dormant partner

7.3. Salaries partner

7.4. Partner by holding out

8. DURATION OF EXISTENCE

8.1. Exist for a fixed firm or for as long as the partnership desire.

8.2. Automatically dissolves on the retirement, death or bankruptcy.

9. DISSOLUTION OF PARTNERSHIP

9.1. Agreement

9.2. Notice

9.3. Death

9.4. Bankcruptcy

9.5. Court order

9.6. Charge

9.7. Illegality of Partnership