Lecture 7

Question 1

What is legal personality?

Answer 1

• every natural person has a legal personality from birth to death.

Question 2

What is equity general partner?

What is salaried partner?

What is a sleeping partner?

Answer 2

Equity /general partner = a partner who takes a share of the profits

Salaried partner = receives a salary rather then share of profits

Sleeping partner = a partner who invest in capital but does not participate in the share of day to day.

Question 3

What is 3 facts abut company limited by shares?

Answer 3

1. Owned by it shareholders
2. Separate legal personality
3. Managed by it board directors

Question 4

What is memorandum of association?

What is application of registration?

Answer 4

Memorandum of association: states the people wishing to form the company and taking one share each.

Application for registration : includes information of about company.

Question 5

NEW LEARNING QUESTIONS :
1. What is unincorporated business?
2. What is incorporated business?
3. What are examples of incorporated business (3)
4. What is example of unincorporated business? (2)

Answer 5

1. Unicoprated business= its not separate so if the business goes down so does that person
2. Incorporated = separate and they have limited liability = they are no responsible
3. Private , public and limited liability partnerships. - they are backed

4.Unincorporated = they are not backed
Sole trader, general partnership