Reference no: EM133809894
Assignment: Company & Business Organization Law
Length: 2000 words.
No AI tools may be used: You must not use AI tools to create any draft or final versions of your work. Your non-use of AI must be appropriately acknowledged. By submitting this work for marking within the Faculty of Business and Law, you are confirming that you have worked within these conditions, and you understand that, in cases of doubt, an investigation may be held.
Question
Ahmed, Lilian and Lisa were classmates at Liverpool John Moores University Business School. They decided to operate a business upon leaving university. For a few months every year, they put their funds together so that they can place orders for mobile phones, laptops, and computer accessories to sell at festivals across the country. They divide the costs and the income of these activities among themselves. Lisa also operates a separate business of selling kitchen wares. The business of Ahmed, Lilian and Lisa became so successful that they contemplate entering into a long-term arrangement. Three months ago, they rented a shop in Liverpool One shopping complex, to sell goods locally, in addition to their online platform. They also decide to obtain a bank loan to support their business operations. They want to continue to share the profits of the business among themselves only, with less operational costs and minimum legal compliance challenges associated with running a business. Ahmed and Lilian intend to be involved in the business for as long as possible, but Lisa intends to reduce her involvement in running the business at some point in the future, to pursue other interests. Lisa also intends to expand her kitchenware business to include other businesses such as mobile phone sales, while still engaged in business with Ahmed and Lilian.
With your knowledge of the various business forms, attempt parts (I), (II) and (III) below with the aid of relevant legislation, case law, policy documents and scholarly writings as applicable.
Use OSCOLA referencing style only.
I. Briefly explain the main characteristics of a sole trader business, partnership and limited company AND identify the particular forms of business that Ahmed, Lilian and Lisa were all involved in, before they obtained the bank loan.
II. Based on your knowledge of the regulation of the forms of business discussed in your answer to (I), advise Ahmed, Lilian and Lisa of the type(s) of business that would best suit their personal circumstances after they confirmed their business intentions having obtained a bank loan. Provide clear justifications for your answers.
III. Assume the following. Ahmed, Lilian and Lisa want to continue to do business together, but they all intend to avoid personal liabilities for the debt of their business, while they continue to share the profits among themselves only. Ahmed is interested in managing the business, while Lilian and Lisa intend to only contribute capital and ideas, without taking part in the management of the business. Advise the parties of the most appropriate business model for their circumstance(s). Provide clear justifications for your answer.
When marking this essay, staff will take note of the following in allocating a mark:
Does the essay:
1. Identify and discuss the relevant legal concepts?
2. Identify and coherently examine any relevant policy issues?
3. Demonstrate an ability to apply knowledge to the stated problem? This is especially important in a problem based question.
4. Draw reasoned conclusions which are supported by argument and legal authority?
5. Produce an accurate and up-to-date picture of the law in this area?
6. Use appropriate terminology and language for a formal essay?
7. Show an ability to present an analytical argument in a comprehensible manner?
8. Do not over-use the facts of decided cases.
9. Use judicial quotes but do not over-quote. Keep them short and punchy.
10. Your work should show significant critical analysis rather than be merely descriptive.
11. There should be evidence of research beyond the core texts.