CASE STUDY ANALYSIS

Case Study Analysis



Case Study Analysis

A. Belinda and Jack run the Back to Your Roots hairdressing salon, which is prospering. They would like to expand their premises and staff and hope ultimately to open other salons in different locations. They are debating whether to continue to trade as a partnership or set up a limited company. Advise Belinda and Jack?

Answer A

At first Belinda and Jack should understand the legal aspects of trade as a partnership or limited company trade. The trade partnership is a contract between the parties to engage in a business relationship. A limited partnership consists of the collective investment scheme. The mutual funds is not the part of limited partnership as the difference between the general and limited partnership is of the limited partnership consist of trustees and other companies. The government approval is necessary in starting a new business in United Kingdom as the Belinda and Jack should consider the Partnership Act 1890 before beginning the new business (Grundy , 2013, pp.69). It depicts that the limited partnership would be useful for setting up the business in different locations as the United Kingdom tax is applicable in initiating the business in the different locations.

The share of the partnership income is depicted and according to the share partnership the partner has to pay income tax when initiating a new business (Grundy, 2013, pp.70) In the partnership law there is a condition that if the partners are non resident and there is not source of United Kingdom income in this scenario there is no liability of tax arises in the United Kingdom. The partnership act worked according to the common law applicable to the law of partnership in United Kingdom. The registration fee and annual fee of the business is chargeable while initiating towards a new business.

The general and limited partnership cannot be occurred at the same time as in limited partnership the partners are solely and equally responsible for the obligations and depths that are incurred in the situations. The company may be the partner in limited partnership. The current governing legislation for the limited partnership act 1907 incurred the contractual scheme regulations in the year 2013. The legal advice should be necessary as to begin the business (Limited Partnership, 2013, pp.1). Belinda and Jack can open a salon in different location in limited partnership as they register themselves in the limited partnership. They both can contribute the money in the business and share the authority of the business equally. The Belinda and Jack would be successful in expanding the new business their business partnership would be successful as they have to obey the governing laws that are covering the legal aspects of the business in United Kingdom.

B. Back to Your Roots wishes to employ a new member of staff.

What contractual terms should be included when constructing the contract of employment?

Be able to understand the legal principles underpinning Business Law.

Identify and apply relevant legal ...