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What factors would influence the advise you give

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Question 1: Would you advise a group of accountants who wish to go into business together, and who hope that eventually many other accountants will join them, to form a company or a partnership? What would your advice be if approached by number of persons who wished to enter into a retail trade together? What factors would influence the advise you give. Discuss.

Question 2: ‘In later years the importance of the rule in Salomon' case has often been exaggerated. It has been thought that the case laid down the proposition that in any circumstances a shareholder who controls a wholly owned company must be regarded as an entirely different legal person from that of his company....In modern years, however, that interpretation of the rule in Salomon's case has been considerably qualified. Modern law looks at the reality of the situation rather than the formal position.' Analyse.

Reference no: EM131071763

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