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Game Station Essay

5661 words - 23 pages

Game Station
I have chosen to have a Game station because I have lots of games and
I know a lot about them. Also my uncle has a game shop so I can get
ideas of him.

Task 2- Legal forms

(1) Sole Trader
A person who runs the business on his own also gets to keep prophet of
business. Sole traders are normally small businesses, and by becoming
a sole trader you risk lots of things, which makes you unlimitedly
liable this means if your business is not going well the government
can take away almost everything from you; your house, your car etc,
all your goods and valuable things and invaluable, the owner has to
pay for any losses made by the business. For example if you made a
loss of say £5000 you would have to find someway of paying back this
may mean selling your house your car anything. A sole trader runs an
unincorporated business on his/her own. Sole traders are also
otherwise known as sole proprietors. Sole traders are easy to set up.
They can set up a business immediately.

The sole trader structure is the most straightforward option. The
individual is taxed under the Inland Revenue's Self-Assessment system,
with income tax calculated after deduction for legitimate business
expenses and personal allowances. A sole trader is personally liable
for the debts of the business, but also owns all the profits.

(2) Partnership
a partnership is an association of two or more people formed for the
purpose of carrying on a business. Partnerships are governed by the
Partnership. Unlike an incorporated company, a partnership does not
have a "legal personality" of its own. Therefore the Partners are
liable for any debts of the business.

Partner liability can take several forms. General Partners (the usual
situation) are
fully liable for
business debts. Limited Partners are limited to the amount of
investment they have made in the Partnership. Nominal Partners also
sometimes exist. These are people who allow their names top be used
for the benefit of the partnership, usually for remuneration, but they
do not get a share of the partnership profits.

A “Partnership Agreement” usually governs the operation of a
partnership. The specific terms of this agreement are determined by
the partners themselves, covering issues such as:

- Profit sharing - normally, partners share equally in the profits;
- Entitlement to receive salaries and other benefits in kind (e.g.
cars, health insurance)
- Interest on capital (the amount invested in the partnership)
- Arrangements for the introduction of new partners
- Arrangements for retiring partners
- What happens when the partnership is dissolved

(3) Incorporated Company
incorporating business activities into a company confers life on...

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