Review and discuss what the law is or should be in a particular area. It is also an opportunity for you to put the skills you have learned into practice. Whilst discussion with others is encouraged, the final piece of work must be your own. Research the law from textbooks, journal articles, government/regulatory web sites etc. Refer to the sources and internet databases in section 6 of this Course Description to start your research. W
Read the factsituation below and completethetasksinPart A
Read the factsituation below and completethetasksinPart A
Liam,Nisha,Sauland Jing arefirstyear universitystudentswhohave recentlyopeneda bakery (BioBreads) attheir university.Liam,Nisha,Saul andJinghave enteredawritten agreementwith theuniversitythatenables them tousetheuniversitycafeteria ovensovernighttobakebreadwhichis thensoldfromastall locatedwithintheuniversity’sfoodcourt.
Onlycertified biodynamic ororganicgrains andingredients areusedinthe manydifferent BioBreadloaves, and ontherare occasioningredients are sourcedfrom overseas,theBioBreadoperators,Liam,Nisha SaulandJing, ensureonlyfairtradecertifiedproducts arepurchased.Theoperators all stronglybelieve thatonly sustainableagricultural practicesshouldbe encouragedandthatgraingrowers and other suppliersshouldbe paidafair pricefor theirlabour. In additiontotheseshared beliefs, Liam,Nisha,Saul andJingdonotapproveoflargemultinationalcorporations–preferring smaller business structures andtheconcept of buyingfromlocal suppliers wherever possible.
Inkeepingwith their beliefs thatafairpriceshouldbepaidfor labourLiam, Nisha,Saul andJing believe theyalsoshouldreceiveareasonablefinancial returnfor theirlabourasbakersand operatorsoftheBioBreadsbusiness. Whileprices arekept as lowas possibleatthebakery,thelargevolume of salesmeans thatBioBreadsis aprofitableoperation.Theoperatorschoose toshare the profits equallybetween themselves.
Liam,Nisha,Sauland Jing are, however, findingit difficult tokeepupwith demandand oftenhave toturn customersaway.This is verymuchagainst theirbeliefsthatBio Breadsshouldbeaplacewhere allwhowishto purchase reasonablypricedbiodynamic,organic orfairtradefood are welcomed.Liam, Nisha,Saul andJing are alsostrugglingtokeepupwith theirstudiesbecause theyare spendingsomuchtimerunningthebakery.
Liam,Nisha,Sauland Jing approachyoufor someadvice.Inparticular,they are seekingyour opinionaboutwhichofthefollowingways oforganisingthe businessis mostappropriategiven thespecific circumstancesdescribed above.
• Partnership
• Co-operative
• Company
• Co-operative
• Company
Whileyou arefamiliarwithsomeofthecharacteristics ofpartnerships and companies you haveless knowledge aboutco-operatives, soyouinform
Liam,Nisha,Sauland Jing thatyouneed to dosomeresearchbefore youcan
give themyour opinion.
Liam,Nisha,Sauland Jing thatyouneed to dosomeresearchbefore youcan
give themyour opinion.
Inyour answer youmust discuss:
1. the respective advantages and disadvantages of each of these business structures
2. the steps required in forming a partnership, a co-operative and a company – and how each business structure can be ended
3. further structural options within each of the business structures (eg provided certain requirements are met a partnership may be a generalpartnership or a limited partnership)
4. how capital may be raised, and any restrictions on capital raising for each business structure
5. The regulatory environment for each business structure (is there a specific regulator? Does specific legislationapplyto thatstructure?If so,is it state,commonwealth or acombinationof both?)
6. Internalmanagementandgovernancerequirementsforeachbusiness structure.
Note:limit yourcomparisontopartnerships,co-operatives andcompanies– andstructures withinthese.DONOTdiscusssoletraders,jointventures, franchises,associations.Andmakesure youusethecorrectstate based legislationfor your location…
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