Corporate and Business Law: Raising and Share Capital - Assignment Example

If the business, incurs loses or profits the two partners will share them equally.... They share the profits equally though Jenny works full time in the business and does not receive a salary while John works irregularly on weekends.... They open a joint account in which they use for the business transaction.... However, for the success of the business it is necessary to have a business account.... A partnership is not a legal entity thus a business account will have to be a joint account of the members (Bentley v Craven (1853) 18 Beav 75; 52 ER 29)....

The arguments "against CSR" is if sole responsibility of business is to the provide capital then all the resources of such an organization should be devoted to making profit 1.... Beside all these, now organizations are solely interested to be more eco-oriented because the organizations are performing CSR and are able to communicate this to the consumer are likely to improve their market share and to develop customer loyalty, as there is growing number of consumers who are prepared to be more aware about the types of good they buy and taking into account the impact their purchases have upon the environment, as a result number of market niches have developed....

It is clear from the paper that the fraction capital of a company raised by the subscription, ordinary shares, and preference shares is called share capital.... This paper would go to investigate the difference between share capital and loan capital, paying meticulous attention to the way in which loan capital may be secured.... A particular proportion of a company's capital gather by means of a loan is called Loan capital.... hellip; Companies may have raise capital provided by the founder's savings in which case things are relatively Straightforward more usually a company will obtain its capital through a loan from a bank or other institution or from the general public....

Financing through equity usually has a higher cost of capital, because equity holders are entitled to a pro-rata share of the profits.... On the other hand, debt capital entails a cost of interest to the borrower-firm.... The nature of the firm's business affects the firm's ideal capital structure – that is, the proportion of the needed capital it may finance through debt and through equity.... It may be noted that companies in the same business do not necessarily have the same capital structures....

The Therefore, the study covers advice to a director on issues of legal implication of incorporating a company, the duties of a director, consequences of breach of duty by a director, the doctrine of ultra vires, the raise of capital by a Company, and types of capital and the naming of a Company.... The discussion falls under the subject of business and corporate law, which deals with how directors, employees, shareholders workers and customers relate (Charlesworth 2005, p....

Limited liability and veil of corporation are some of the legal consequences of incorporation (Appendix 2) and transferable share capital and debentures are sources of capital.... These identify advantages such as easy and fast decision-making and authority over operations and profits but disadvantages such as limited capital base,… Transfer also terminates ownership.... Personal savings, gifts, donations, and loans are the sources of capital (Miller 2012, p....

The value of the authorized share capital can also be kept low, so that in the event of a loss.... Venture capital investment could provide a valuable source of finance without the need to relinquish control of operations of the Company.... This would provide a means for raising capital on the basis of existing shares already possessed by Lorraine and Brenda in the partnership....      Since the private limited Company is being set up for expansion of the business, UK corporate law that was the sole determinant when the partnership was established in Essex will now have to take into account, international law as well....

Undertaking the advantages and disadvantages of equity and debt, the owner plans a capital structure.... hellip; Different companies follow different Debt/Equity ratio for their capital structure.... The term “capital” refers to the fund that a company raises initially to meet its operating expenses.... When a company is set up, it raises capital from the lenders and investors to fund its operations.... Large companies spend a lot of resources in deciding their optimal capital requirements (National Bank Share and Bond Trading, 2008)....