Develop and update the legal knowledge required for business compliance THHGLE20B
Assessment One – Report on Ownership structures
1. The business name is SaKuLa Restaurant. We provide good service and varieties of fast food for young people, older people and office worker, those who are on diet. It is really delicious and food has achieved an international recognition of being the very best quality. However, it isn’t very expensive.
Experience the taste of Contemporary Japanese cuisine in the Preston. Feel the warm and cosy ambience and be pampered by our friendly staff. You can taste a variety of delicious ramen or perhaps try the traditional Japanese cuisine like Sashimi, Sushi, Miso soup…
2. The business will be operated as a sole proprietor by Tony Li. The proprietor has chosen to operate as a sole proprietor to have total control the business. The means that when I decided to start a business on my own and accept total responsibility for the business. Then we say this form for sole trader. So I have to consider many of the issues, before I decide on this I will need to think about the following such as distinction the sole trader (unlimited liability), partnerships (unlimited liability) and the company—private (proprietary limited) or public (limited liability), the business is owned and operated by me, I keep all profits and suffers any losses, employ staffs and choice the correct the manager or supervisor.
It is a simple formation which is really easily to total control the business by the owner. He keeps all profits and suffers any losses, employ staffs and choice the correct the manager or supervisor. Also it is a sole proprietorship is not a corporation. It does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. A sole proprietorship also does not have to be concerned with double taxation.
A sole trader is limited to expertise alone. For example, for the other type of business, there is more than one person responsible for running the business and have a range of the methods to solve the problem, also can provide a better and wider range of service.
Also for the sole trader has to consider about how much capital investment. Because the sole trader can not have lot of money, so when he get some trouble, then can not have enough money to solve it. However, the other type of business for (partnerships and the company) can get more money to running the business.
Another disadvantage of a sole proprietorship is that as a business becomes successful and busy, the proprietor has chosen to operate as a sole proprietor to have total control the business. So it is really hard for owner to control everything, he have to operate and keep all profits and suffers any losses. Then it is harder than other type of business for (partnerships and the company).
Assessment Two – Case study
1. In this case we assume both the parties are capacity for contract and it was lawful purpose. There were intentions of both parties to buy and sell. In bottle shop all the items on the shelves are the offer provided by the shop. When the time Hoe come to the register there was an acceptance to the offer. After Hoe gave the primes to change another items, actually he refused this offer and he created a counter offer to the shop to buy other items. However, there was no premise gave to proof this contract by the attendant for consideration.
Therefore there was no contract between these two parties.
2. For the case, In this case we assume both the parties are capacity for contract and it