assignment

1. (i) The three basic alternatives are
 Sole trader- sole trader there is a business with a single owner.
 Company - a company there is a business with a single owner.
 Partnership- partnership there is a business with two or more co-
owners.
The sole trader is a business with single owner.
While in the case of a company there is a business with a single owner’
The difference between the two is the identity of the single owner.
A sole trader is a single owner, who is an individual that is a natural person while in
the case of a company the single owner is an artificial person, a company is a legal
entity.
Company is a legal entity that is able to make contracts, own property, sue and can
be sued. The company and its members are legally distinct. The members own the
company, the company carriers out the business, the members do not own the
business.
In a partnership there is a business with two or more co owners. The partners (co-
owners) are comprised of individuals or companies or mix of both individuals and
companies. A partnership is not a legal entity like companies. A partnership is the
name of relationship where two or more individuals carry out a business with a
common motive of making profit.
(ii) The situation it is stated that the Smith family is 5 individuals – Mr and Mrs
and A and B and C.
The circumstance under which it’s true that smiths family own the business is where
each of Mr and Mrs and A and B and C own the business. In the given sceniorio there
is co- ownership of business. Its is a partnership business with Mr and Mrs and A and
B and C as the co-owners of the partnership business
(iii) The term ‘business name’ is defined in the Cos Act 2015 s.2 as the name or style
under which any business is carried on. The name of the businessin this case is ‘Lee’s
Breadshop’.
Section 32 requires all business names (subject to minor exceptions) to be registered.
Therefore the name ‘Lee’s Breadshop’ should appear in a register of business names
maintained by the Registrar.
A party (sole trader or co) or parties (partnership) registering a business name must
supply particulars in the prescribed form (s.34). The most important bit of information
is the true legal name/s of the person (sole trader or co) or persons (partnership)
utilising the business name.
This information must be kept up to date (s.39). Thus if the business is sold and a new
owner uses the business name then this must be notified to the Registrar and the
information is updated in the file. When registering a business the business name is
open to the public. The individuals or co owners use business name to operate the
business
(iv) The vendor is Lee Co Ltd.