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BUSINESS LAW - Coggle Diagram

- - - - Directors
        
        :star: day to day management
        
        :star: formal management structure
        
        : :star: may be employees
        
        :star: agents
        
        :star: fiduciary relationship (trust)
      - Shareholders
        
        Profits may be distributed to shareholders, who own shares in the company however are liable only to the extent of their investment
    - - Hybrid of company and partnership
  - - - :check: all decisions and profits to one owner
      - :check: easy to set up as no formal legal process
      - :red_cross: unlimited liability as no separate legal entity
      - :check: no requirements of disclosure
    - - :check: no formal legal process
      - :red_cross: shared profits and decision making
      - :red_cross: unlimited liability
      - :check: no requirements of disclosure
      - :check: easy to raise finance for
      - 'Partnership is the relation which subsists between persons carrying on a business in common with a view of profit.'
        
        Most partners form specific contractual agreement and agree what their rules are. However the Partnership Act 1980 governs all relationships where no contractual agreement is made.
        
        Partners have an agency relationship - authority to bind other partners to an agreement whether authorised or not.
        
        Partners have joint and several liability - someone owed money can choose to sue all or individual partners