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Now his accountant has recommended that he should consider registering as a company in order to gain the benefits of separate corporate personality.
TASK 01Identify which of the following are benefits to Simba of incorporating the business.
A. The company, rather than Simba, will be liable for any negligence claims made against the business.
B. The limit of Simba’s liability in respect of the business will be any amount unpaid on his shares.
C. The company can enter into the new contracts in its own right
D. The company will be liable for the business loan rather than Simba.
TASK 02Which of the following describes separate legal personality?
Tim had no authority to act in this way. When Harry returned from his holiday, he wrote to Polly saying that he was ratifying Tim’s act.
TASK 01Select the TWO correct answers.A. Harry is able to ratify the contract.B. Harry is not able to ratify the contract.C. Polly is bound by the contract.D. Polly is not bound by the contract.
TASK 02In which of the following situations does an agency relationship exist?
TASK 01Which of the following statement concerning the contract to buy furniture is correct?
TASK 02Identify whether the following contracts are enforceable or not enforceable.
TASK 01Fill in the gap, delete as appropriate and complete the sentence.
The term ‘partnership’ is defined in ________, as the relationship which subsists between two or more persons carrying on a business in common with a view to profit.
Which of the following suits the blank?
TASK 02The major advantage of incorporating a business is that the liability of the members is __________.
Select the answer which suits the blank.
TASK 03Which of the following is a main characteristic of a public company?
In January of this year Amy entered into a large contract with a longstanding customer, Fred, who had dealt with the partnership for some four years. Fred believed Amy’s claim that she was a partner in the business. This contract has gone badly wrong leaving the partnership owing £20,000 to Fred and unfortunately the business assets will only cover the first £10,000 of the total debt.
TASK 1Which of the following TWO are not features of a general partnership?A. The partnership must be registered at Companies House.B. The partners have unlimited liability.C. There must be a partnership agreement.D. The partners have joint and several liability.
TASK 02Who is liable for the £10,000 shortfall of the debt?
TASK 03Identify whether the following statements are true or false.
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