You should review the main legal features of sole traders, partnerships and proprietary companies… 1 answer below »

Problem situation
Your overall problem is to learn how to advise a client about business structures. You should assume
that you are a business consultant whose client is proposing to set up a business, and they will seek
advice on an appropriate legal structure for their business. They do not want advice on tax because they
will get tax advice from their specialist tax accountant, but they do want advice on the legal aspects of
choosing a business structure. They also tell you that they do not want advice on trusts, because they
previously had a trust and found it too confusing. You should limit your advice to the three most
common structures – sole traders, partnerships and proprietary companies.
You should assume that I am your supervisor and I have set you these tasks, and I want you to provide
reports to me on each stage of the task so I can be sure that you are doing a good job. Parts A, B and C
are written reports, and Part D is a YouTube video.
Preliminary task
You should review the main legal features of sole traders, partnerships and proprietary companies. You
will need this knowledge, as well as the more detailed research that you do in Parts A, B and C, to
interview your client and give advice.
Part A (maximum 350 words, 5 marks)
Business structures need to be set up at the outset and then administered throughout the life of the
business. In this part, you need to explain and compare the set up and administration costs and the
administrative burdens of sole traders, partnerships and proprietary companies.
Part B (maximum 700 words, 12.5 marks)
In this part, you need to compare the liability of partners to the liability of individuals involved in a
proprietary company under contracts entered into with outside parties.
Part C (maximum 800 words, 12.5 marks)
In this part, you need to compare the duties owed by partners to each other and the duties owed by
directors in companies.
Part D (YouTube video, maximum duration 6 minutes, 10 marks)
In this part, you report on an interview with a client in which you give advice and get their responses.
This is NOT a video of the interview itself. It is a video of you reporting back to your supervisor after
interview. You conduct the interview first and then do the video.
The purpose of this part is for you to use the research you have done on the business structures to
conduct an interview with a real person or persons (pretend clients) who are in a business, or interested
in setting up a business. You advise them on the various business structures they might use for their
business, and to get their feedback on what factors would be important to them for their particular

 

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