Liability – Knowsia

BCL – L1 – Q57 – Alternative forms and constitutions of business organisations

Explain key characteristics, advantages, and disadvantages of a sole trader.

Question

(a). Explain the key characteristics of being a sole trader. What advantages and disadvantages do they give?

(bi). Section 3 of Incorporated Private Partnerships Act, 1962 (Act 152) states that ‘Partnership means the association of two or more individuals carrying on business jointly for the purpose of making profits’. Suppose you had set up an unregistered business for buying and selling second-hand vehicles with two friends, and you decided to call it Triad Car Dealers, determine the following:

(i) Whether there can be a valid partnership with your two friends if you own 85% of the total assets of the business?

(ii) Who makes the decisions which affect the nature and running of the business?

(iii) Describe the liability of various partners for partnership debts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business organisations, Debts, Incorporated Private Partnership Act, Liability, Partnership
Level: Level 1

Topic: Alternative forms and constitutions of business organisations

BCL – L1 – Q50 – Alternative forms and constitutions of business organisations

Advise why a firm should bear the cost of a partner's expense for a company car tyre.

Question

Kweku is a partner of an Accounting Firm. The firm’s office is in Kumasi. In May 2019, Kweku was assigned an approved accounting duty outside Kumasi with the use of the Firm’s car. During the journey the car had a burst tyre. The driver of the car for unexplained reasons had no spare tyre on the car. He, therefore, recommended the purchase of a brand-new tyre which Kweku did with his personal money. He obtained a receipt in the name of the Firm. Kweku sought for refund of his money amounting to GH₵1,280 for the tyres bought. The Managing Partner refused the refund saying it was the sole responsibility for Kweku to bear the expenditure.

Required:

(a) Advise the Manager as to why the Firm should bear the full or part of the cost and not only Kweku.

(b) Advise Kweku why it is not the sole responsibility of the firm to bear the cost.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Incorporated Private Partnerships Act, Liability, Partnership, Shared responsibility
Level: Level 1

Topic: Alternative forms and constitutions of business organisations

Tag (SQ): Liability

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BCL – L1 – Q57 – Alternative forms and constitutions of business organisations

Explain key characteristics, advantages, and disadvantages of a sole trader.

BCL – L1 – Q50 – Alternative forms and constitutions of business organisations

Advise why a firm should bear the cost of a partner's expense for a company car tyre.

Our offerings

Contact Info

Customer

Get In Touch

Tag (SQ): Liability

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BCL – L1 – Q57 – Alternative forms and constitutions of business organisations

Explain key characteristics, advantages, and disadvantages of a sole trader.

You're reporting an error for "BCL – L1 – Q57 – Alternative forms and constitutions of business organisations"

BCL – L1 – Q50 – Alternative forms and constitutions of business organisations

Advise why a firm should bear the cost of a partner's expense for a company car tyre.

You're reporting an error for "BCL – L1 – Q50 – Alternative forms and constitutions of business organisations"

Our offerings

Contact Info

Customer

Get In Touch

admin