Introduction to Business Law and Practice

Question 1

What are different legal forms of business?

Answer 1

1) Sole trader
2) Partnership
3) LLP
4) Private and unlisted public companies

Question 2

What are key considerations when forming a business?

Answer 2

1) Cost
2) Risk
3) Structure
4) Formalities
5) Privacy
6) Finance
7) Tax

Question 3

What do sole traders and partners pay tax on?

Answer 3

Income tax on share of profits and capital gains tax on share of capital gains

Question 4

What do companies pay tax on?

Answer 4

Corporation tax

Question 5

What do shareholders pay tax on?

Answer 5

Dividends (double taxation)

Question 6

What are two key principles which make company attractive?

Answer 6

1) Separate legal personality
2) Limited liability for shareholders

Question 7

What are core principles of contract law?

Answer 7

1) Offer
2) Acceptance
3) Intention
4) Consideration

Question 8

What might contract terms be?

Answer 8

Conditions or warranties - express or implied