Melbourne Institute of Technology Pty Ltd CRICOS Provider No: 01545C, 03245K NSW
Business and Company Law
Tutorial Two
Part B
Unit Coordinator: Dr. Tushar Das
Reference: Australian Corporate Law
6th Edition
Jason Harris • Anil Hargovan • Michael Adams
- What are the main characteristics of running the business in the form of a sole trader?
- Identify at least three differences between partnerships and joint ventures.
- What is the definition of a partnership? Choose the most appropriate response.
a. A partnership is a contractual agreement between individuals by which they share in an enterpriseb. A partnership is the combination of several people who carry on a business in common with a view to profitc. A partnership is an enterprise which is registered as a partnership with the state authoritiesd. Partnerships are family businesses where family members make contributions and run the enterprise
- Explain the concept of limited liability.
- What are the essential elements for the creation of a trust?
- Faith Ltd is the trustee of James Trust. The trust property is worth $500,000. Faith Ltd runs an internet café on behalf of the trust. The trust deed notes that the trustee can only enter into contracts in relation to running the internet café. However, Faith Ltd, on behalf of the trust, entered into several transactions worth $300,000. These transactions were in relation to building a railway in India. Faith Ltd pays the $300,000.
Advise Faith Ltd on its right of indemnification from the trust property.
