Assignment 1 – LGST 369
Case Study A & B
Victoria Esposito 3088325
Case Study A – 50 %
Stan is thinking about starting a toxic waste disposal business. He plans to collect the waste from businesses that produce it and then dispose of it in a sanitary landfill. In order to start this business, Stan will need a substantial amount of money to buy and develop the landfill site and purchase five trucks capable of transporting toxic waste.
Stan should have concerns about operating this business as a sole proprietorship, a sole proprietorship exists when a person carries on a business on their own, without adopting any other form …show more content…
In this situation presented between Marty and Sally, they were carrying on business as a partnership, but a Limited Partnership, which is slightly different than a General Partnership. A General Partnership is a form of business organization that comes into existence when two or more persons carry on business together with a view to a profit. There are many characteristics of a general partnership, which explain why Marty and Sally were carrying on business as a Limited Partnership rather than a General Partnership. These characteristics include; A partner cannot be employed by the partnership, All benefits of the partnership business accrue directly to the partners, All partners are personally liable for all the obligations of the business, including torts committed by a partner or an employee of the partnership in the course of the firm’s business. Since Marty is in fact employed by Sally as the manager of Trader’s Place, it is clear that they are not carrying on business in a general partnership. There are also many factors that suggest the existence of a partnership, these include; Sharing profits, Sharing responsibility for losses, including guaranteeing partnership debts, jointly owning property, participating in management including having signing authority for contracts and bank accounts and enjoying