Jim who recently quit his job after receiving a very large bonus payment is interested in...

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Jim who recently quit his job after receiving a very large bonuspayment is interested in forming his own business. He is not surehow to begin and he has
asked you to help him identify and analyze what company formationoptions he has available. He can set up his business in the UK,Canada or the USA,
he will go where you decide.
a. Please advise him on what it means to be unincorporated, theadvantages and disadvantages
b. Then explain to him the significance of opening an incorporatedbusiness? What are the advantages and disadvantages of this type ofbusiness?
c. Then explain to him what is a Limited Liability Partnership?What responsibilities and liabilities do the partners have forthemselves individually, to
the firm/to each other in the firm and to the public?
d. Explain to Jim if he needs additional capital to begin his newcompany what are some ways he could finance his new company?

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4.2 Ratings (741 Votes)

a The term unincorporated means the organization form to attract public either in the form of clubs or political interest or for any charitable purposeThe term has word un in its name therefore they do not follow normal course of procedure instead in informal organization formedIn this category the business and the person are considered one and the person running the business is known as proprietor Advantages and disadvantages of these type of organization Advantages includes Easy to setup The set up cost is very minimal and does not require much of paperwork instead it can start within seven days of thinking of business idea Confidentiality Being the business o sole proprietor ie single person it does not need to maintain separate accounts nor needs to file any accounts with the authority therefore the confidentiality in the business maintained Charitable These association are used by people needed to invest the money for the society and to serve them better Opening association for charitable purpose will helps the resources to be within the society Clubs To attract the public interest one can invest in this The youth gather in this association to avoid the stress from the working life they have Banks and financial institution To provide loans and take deposit and involve public in its business the best option available is opting for banking institution Disadvantages includes There is no separate legal identity For example the club owner themselves are the members in the clubs in case of any default or in case of non payment of See Answer

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