LAWS20059 Corporation and Business Structures Assignment Sample
Marks: 40 per cent of total grade.
Due date: Friday Week 7 (29 April 2022) 11:00 pm AEST
Four parts: Parts 1, 2 and and 3 requires you to write a memorandum of advice.
Parts 1, 2 and 3 must be structured as a professional memorandum of advice using the template/example in Moodle.
Style: All assignments must include a Title Page, Contents Page, Memorandum of Advice
and a Reference List (bibliography).
Format: The student’s name and student identification number must appear on the first page of the assignment and in the footer of each page. The assignment is to be formatted in a clear size 12 font (Calibri, Cambria or Times New Roman), double-spaced and include page numbers.
The total word count is to be stated on the first page of the assignment.
Word count: Assignments must not exceed a total of 2,000 words.
The word count excludes citations and the reference list.
Clearly state the word count in the Title Page.
Students may transfer unused words in a question’s word count to another part of the assignment.
Submission: Students must submit the assignment saved in Word as ‘.doc’ or ‘.docx’ file via the submission link in the ‘Assessment’ tab in Moodle for LAWS20059.
The name of the Word doc must include the student’s name, student identification number, unit number, assessment name, term and year.
Background Facts for Assignment Help
After graduating from your business degree at Central Queensland University you recently commenced working at a professional consulting services firm called “North Star Consulting” in the State or Territory in which you are undertaking your studies. You work in the legal compliance team and utilise your knowledge of commerce and law acquired from LAWS20059 to advise a diverse range of clients. You specialise in advising clients on how Australian law governs business structures in the operation of commercial activities.
Your firm wants you to interview a client who is seeking advice on what business structure to adopt for their business. In this assessment you must write a Memorandum of Advice as instructed by your supervisor (instructions are below). You must follow the firm template/example Memorandum of Advice posted on Moodle.
PART 1 – THE CLIENT INTERVIEW & BUSINESS
In Part 1 you must attend the week 3 class and work in groups of two (if class numbers are odd, you may be in a group of three). Students will be randomly allocated to a group by the unit coordinator or tutor. Under the supervision of the unit coordinator or your tutor, you must interview one other group member about a fictitious business which he or she has dreamed of starting (if you are in groups of three, just choose one person to interview). You will have 20 minutes to conduct the interview. The person being interviewed will, for the purposes of this exercise, pretend to be your client. You must obtain information about the client’s business from asking the client questions, and that information needs to be useful in informing what business structure is most suitable for their business. This means that the questions which you ask in the interview need to be designed to obtain the information needed to advise on which business structure is most appropriate for the business.
If you are unable to attend the week 3 class for a legitimate reason (such as work, family and carer responsibilities, etc) you must email the unit coordinator and ask for permission to interview a friend, relative, fellow student or someone else outside class time. Remember to let the person you are interviewing know that this is a University assignment, so the exercise is only for educational purposes and you are not qualified to give any advice.
In Part 1 of your Memorandum of Advice your supervisor, Jonathan, wants you to:
1. describe how you prepared for the interview
2. list the questions you which you asked at the interview
3. reproduce your file notes (your file notes will be the notes you took during the interview so as to remember what the client told you about the business, their needs, etc)
4. summarise the client’s business and responses to your questions
5. explain, using your knowledge of law covered in LAWS20059, why you chose to ask the questions which you asked in the interview [6 marks]. You must justify each question which you asked by explaining why the question was required to illicit information needed to understand the business and recommend a business structure for that business. This will require you to use your knowledge of business structures and the law, and explain how this knowledge shaped how you conducted the interview and informed what questions you asked.
The idea of Part 1 is to show that you prepared for the client interview, and that you used your knowledge of applicable law to shape the interview and inform the questions which you asked in the interview. Make sure that you press the client for information that you need (YOU need to guide the interview and obtain the information from the client, and if the client is vague or unsure or uncooperative YOU need to get clarity and the information).
PART 2 – IDENTIFY AND EXPLAIN BUSINESS STRUCTURE OPTIONS FOR YOUR CLIENT’S BUSINESS
In Part 2 you must identify business structure options for your client’s business, explain each of these options and the key legal differences between them in Australian law. In Part 2 of your Memorandum of Advice Jonathan wants you to:
1. identify at least three business structure options which can be used for your client’s business and
2. describe each of these business structures, and the key legal differences between the business structures. He wants to know why each of these business structures are an option for your client’s business, the key features of each business structure and the main legal benefits and disadvantages of using each business structure.
PART 3 – ADVISE WHICH BUSINESS STRUCTURE IS MOST APPROPRIATE FOR YOUR CLIENT’S BUSINESS
In Part 3 you must evaluate each business structure option which you identified and explained in Part 2 of the Memorandum of Advice to provide advice. In this part of the Memorandum of Advice you must advise which business structure is most appropriate for your client’s business. Jonathan wants your advice on what business structure is the best option for client’s particular business so the firm can consider your advice before advising the client. You are expected to use information which you gained from the interview (Part 1 of the assignment) and your research and knowledge of business structures (Part 2 of the assignment) to weigh up the various business structures and assess which business structure is best for your client’s business. You must tailor your analysis for your client’s specific business and circumstances, focusing on key issues, client needs, client preferences, etc that were teased out from the interview.
To: Charle Brown
From: John Parker
Team: Legal Compliance team, North Star Consulting
Client: Charle Brown
Re: Advice on Business Structure
Memorandum of Advice
The client, Charle Brown wishes to begin a business of food handling plant in Australia. This reminder of exhortation gives data about the client interview, the client's business and business structures utilized in Australia, and prompts on which business structure is generally suitable for this client's business.
Part A: Client's Detail
Q: Good Morning Mr.Charle, How might I at any point help you?
A: Good Morning, I am Planning to maintain a business, and I am needing a word of wisdom on which business design would it be advisable for me I choose.
Q: Are you intending to maintain the business alone or you have a few companions?
A: Well, I have not made a choice about it yet. I have a school companion who will contribute however I am not exactly certain on whether to impart the business to him or run all alone.
Q: Have you considered what will be your portion, what agreements will be there in your organization understanding?
A: As referenced prior, I am in an issue regardless of whether to do an organization with her. She is my old buddy yet has not much information on business.
Q: What is she doing now?
A: She is a lecturer at college.
Q: What sort of business would you say you are thinking off?
A: I am intending to run a food handling plant.
Q: what number items would you say you are intending to create, who will be your objective client?
A: Actually I am intending to zero in a bigger number of on clients than the items. Allow me to expand, we will discover some organization selling an item in Australia.
Q. Well that sounds fascinating. It appears as though you will put away huge amount of cash. How much cash would you say you are intending to contribute? How might you source your asset?
A. I have not sorted out the specific sum we want to begin the business. Be that as it may, yes we want great amount of cash as we need to lease a major space for stockroom. Furthermore, we likewise need to purchase cooking pots and pressing apparatuses. In the event that I go for an association with my companion we will contribute 50/50. Assuming I will run alone I unquestionably need to get from bank.
Q. Have you pondered the quantity of workers you will employ?
A: I realize I really want individuals for kitchen, for bundling and for organization. The specific numbers will be realized solely after we start our business. It very well may associate with 15 or 20.
Q. How long would you say you are wanting to do this business?
It's my fantasy business and I need to develop it till my passing and believe that it should stay in the business for eternity. Through this business I believe individuals should recollect me.
Q. What might be said about rules and guidelines? Do you like guidelines or you need more opportunity in your business?
Honestly speaking, I like to have specific principles and guideline. In the event that we don't include guidelines inside our association, maintaining a business would be more troublesome. Appropriate guideline keeps us trained and we can zero in on more prominent objective.
Q. Shouldn't something be said about obligation? Is it true that you are prepared to bear every one of the commitments?
I wouldn't gamble all my own resources for this business. Yet, yes subsequent to maintaining a business I unquestionably have commitments to others or various gatherings and association.
Q. Last one, do you have any issue with respect to the exposure of your own data?
No, I wouldn't fret individuals seeing my profile with the location, telephone number or date of birth in it.
Part B: Research on Business Structure
Organization is one more type of business where at least two individuals convey a business in a similar manner as same objective to procure benefit. It implies that each accomplice can cause a commitment for which rest of the accomplices are capable. Accomplices have both guardian and legal obligations. They should show most elevated level of trustworthiness and entirely pure intentions, and there ought to be no irreconcilable circumstance. Partners has individual limitless risk to the untouchables or outsider. However, there is an arrangement where a few accomplices have limitless obligation while others can restrict their responsibility to their venture or capital contribution .
Joint Venture is the type of business where at least two individuals or business houses consent to cooperate in a specific undertaking and take advantage of advantage from it. Each party might have different interest in the specific undertaking. Not at all like association has each party in a joint endeavor had individual responsibility, one party can't tie the other. A joint endeavors will be an association on the off chance that it fulfills the legal definition-Canny Gabriel Castle Advertising Pty Ltd. Being the chief she has both legal obligations and general regulation obligations. She ought to be exceptionally cautious on her obligations. on the off chance that she neglected to play out her obligations she might need to confront common cures and in some cases even crook cures . Examining the upsides and downsides of various business construction and taking a gander at the conditions of the client, little restrictive organization will be the best other option.Organization is a different legitimate substance. It can sue and be sued, go into gets, own property and have other legitimate freedoms and commitments. The expense of laying out an association will be somewhat less expensive than shaping an organization. Since our client is beginning a business it will be not difficult to oversee reserve in the event that she share her speculation with her companion. In prior days organization probably won't acquire sufficient benefit or even endure misfortune. Both the benefit and misfortune will be divided between the accomplices causing less weight in her initial days. The most appealing attributes of organization is restricted responsibility. It implies that regardless of whether the association can't pay its liabilities, then, at that point, the financial backer of the association are not responsible to pay the obligation. The financial backers are not expected to pay anything else than their underlying or concurred venture to meet the organizations liabilities. Organizations are made by resolution. Everything the guidelines of an organization is represented by Corporation Act 2001('CA'). ASIC is the principle controller that has been managing monetary business sectors, protections, fates, partnerships, customer assurance in superannuation, protection and store taking .
Organizations are classified in view of risk of individuals and in light of capacity to propose to public. There can be organization restricted by shares, restricted by ensure, limitless risk and no responsibility organization. There are public organizations and exclusive organizations. Restrictive organizations are appropriate for private organizations of restricted size. Public organizations are more proper for huge association ready to get assets by offering offers and debentures. Corporate Veil safeguards the proprietor, or overseer of the organization. Yet, in a few extraordinary conditions court can lift the shroud and make individuals in charge of the organization at risk. Court can puncture the safeguard in the event that the individual behind the safeguard has not satisfied the legitimate obligation, or not observed the guidelines and guideline of the agreement - Gilford Motor Co. Ltd v Horne. The Corporation Act has an impact of eliminating the corporate safeguard. Organization's chief will be expected to take responsibility for corporate obligation under s 588 G of Corporation Act assuming they continue to exchange regardless of it was bankrupt to know that the organization.
So these are the attributes or subtleties of various business structures that may be applicable to the client.
Part C: Weighing up the other options and giving Recommendation
Sole Trading, Partnership and exclusive organization are the three potential choices for the client. She can be a sole merchant yet needs to bear limitless individual liabilities. Since she isn't asset of facing challenge, it wouldn't be a most ideal choice for her. She can diminish the gamble or offer her concerns by accepting her companion as an accomplice. The two of them will be at risk and will share the commitments. The expense of laying out an association will be somewhat less expensive than shaping an organization. Since our client is beginning a business it will be not difficult to oversee reserve in the event that she share her speculation with her companion. In prior days organization probably won't acquire sufficient benefit or even endure misfortune. Both the benefit and misfortune will be divided between the accomplices causing less weight in her initial days. Association is ordinarily shaped to share the ability of each other and get a cooperative energy impact in the business . In any case, our client referenced that her companion has no information about the business. In association each accomplice is obligated for the carelessness of the other accomplice- s 13 ('PA'). The two of them will have limitless individual risk towards the outsider.An exclusive organization will be the one more choice for her to maintain a business with restricted risk. Organization is seen to have specific drawback like greater expense, revealing prerequisite, and obligations forced by regulation for members. She can shape a solitary chief/investor organization. Later as the business develop, she can add the chiefs and investors, and her companion can join at that stage . She referenced that the representatives will be under 50 and income under $25 million, so she can go for little exclusive organization s 45 A(CA). Framing a little exclusive organization, she should not get ready fiscal reports and cabin with ASIC. The principles forced by the enterprise act might be problematic yet it makes corporate cover between the client and the organization safeguarding her in a few conditions. Assuming the organization is fruitless, liabilities might surpass its resources and the association can't pay its obligation . The client will lose her underlying venture however isn't expected to pay the obligation of the organization. In the event that she shapes an organization the organization keeps on existing even after her passing and her desire to interminable progression materializes. Being the chief she has both legal obligations and general regulation obligations. She ought to be exceptionally cautious on her obligations. on the off chance that she neglected to play out her obligations she might need to confront common cures and in some cases even crook cures . Examining the upsides and downsides of various business construction and taking a gander at the conditions of the client, little restrictive organization will be the best other option. She will have restricted risk, she will not need to fret over the mastery and carelessness of the accomplice, and having little organization will assist her with keeping away from a portion of the administrative prerequisites.
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