Strict liability

Having abnormality in already existing legislation that have already analyzed by different departments, there is still potential for the misuse of the idea of SMC having limited liability at the hand of single member. In Pakistan there is no proper mechanism of checks and balances to reduce the risk of the corporate liability by the SMC in Pakistan. SMC seems to make an environment for business activities without of its proper sense and in Pakistan this idea has been put in a way that it created…

Limited liability companies (LLCs) offer business owners several advantages over sole proprietorships, partnerships and in some cases S and C corporations. Business operators who take advantage of LLC business formation can realize significant financial benefits and can also use living trusts to facilitate exchanging limited liability company ownership more easily relative to using a will. LLCs offer the asset protection enjoyed by corporate entities, are less expense to maintain and require…

The cost of equity for Mallard is 12.4% as per below calculation. The valuation of Mallard shares is $20.6675 million which is lower than the offer price $22 million. Dividend valuation model relies on strict assumptions, including a constant expected dividend growth rate. The growth rate estimation is very subjective because the dividend growth rate is based on historical data over 5 years. Mallard’s management decided to dispose of the company, hence…

Free Enterprise System Free enterprise is a system where the government has very few limitations on business activities and ownership. In this system this government has minimal ownership of an enterprise. The U.S. economic system of free enterprise operates according to five main parts: the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty. In free enterprise you have a right to own and do all of the main parts the the…

proprietorship: Mini markets, restaurants, convenient stores, burger kiosks, etc. Advantages Disadvantages Easiest to exist and start. Unlimited personal liability. Complete control. Difficult to raise the money. Single owner saves all the profits.…

for corporations that are not yet created. This liability can only be lifted with a novation, which is an agreement between the corporation and the third party to release a promoter. Since no corporation was created, the novation process cannot occur and Hayes will be held liable for the contract. Hayes was forced to pay for the van because promoters can be held liable for the contracts they made for corporations that are not yet created. This liability can only be lifted with a novation, which…

to operate and what kind of service to provide. The benefits of sole traders is that the owner gets all the profit and have total control on how to run the business. The disadvantages are that they have unlimited liability as there is no distinction between the owner and the liabilities, they bear the risk of all losses of a business as well as if they are unwell, they have no one to depend on to run the business.…

life are interested in helping her out and becoming part of the organization, Shania then understands that these people deserve a fair share in the potential profits the coffeehouse will generate. The reason why it is better to choose a limited liability partnership as opposed to a general partnership is due to two reasons. The first is in regards of her husband not wanting to participate in the operations and management of the company; he only wishes to…

of incorporation is permitted when the person of the company are using the incorporation of the company to deliberately frustrate a legal obligation. A veil was described as a wall between the company and its shareholders. Hence, once a limited liability company is created as of the separate legal entity principle, the veil of incorporation will be created between the personal assets of the members and the assets of the company. There are three exception circumstances which the veil of…

of the corporation. Corporations pay a different tax rate then companies and individuals. A limited liability company (LLC) does not have stockholders, it is comprised of members that have an interest in the company but do not have any personal liability if the company were to be sued. A LLC must file an Articles of Organization with the Secretary of State in order to become a limited liability company. A sole proprietorship is a business that one person owns. They are personally liable for…