Write Like A Pro Essay

850 words - 3 pages

Surfboard Business ReportExecutive summaryDanny, Zac and Christina are looking to open up a new surfboard making business with their limited experience in the field. Danny gained some basic accounting skills from a medium sized transport company. Zac just completed a business degree from a University and Christina is a part time worker in a surf shop. Together, they have an experience in making surfboards for their family and friends; and are well known in the local Bondi community.The business report will provide a clear explanation to the different choices of legal structure according to the surfboard business's requirement including a suggestion and reasons behind them. The report will also analyse the challenges that Zac, Danny and Christina's business will face in each phase of the business life cycle.Classifying the surfboard business according to legal structureThe legal structure refers to how the ownership of the business is registered. There are 4 different legal structures that Danny, Zac and Christina can choose for their surfboard making business.Sole TraderA sole trader is when a business can be owned and operated by only one person. A sole trader structure would not be appropriate for the surfboard business because then there will be only one owner for the business to operate whereas there's three of them who equally wants to be responsible for the business.Public CompanyPublic company is a business that has ownership opened to all the member of public through the issue of share on the Australian Stock Exchange (ASX).Public company also wouldn't be the right choice for the surfboard business because public companies are very large in size and also cost a lot to start the business with.PartnershipPartnership is an unincorporated business that is owned and operated by 2 to 20 people. The owners/partners have unlimited liability and they all will be equally responsible for their actions and shares in profit.Partnership would be the best choice in choosing legal structure for Danny, Zac and Christina's surfboard business because they are suitable for each other as well as the business and will contribute in responsibilities, work, risks and expenses to start up the business. Profits will also be shared between them three only.Private CompanyPrivate company is a business owned and operated by 1 to 50 shareholders and has limited liability. Shareholders must be personally invited by the company to invest in the business. Private company can be another second best option for Zac, Danny and Christina's surfboard business because private companies has limited liability, therefore separate legal entity. Surfboard business can be later transferred as a private company to raise the fund through family and...

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