Podcast
Questions and Answers
What is one of the key reasons why a business needs to be structured within a defined legal framework?
What is one of the key reasons why a business needs to be structured within a defined legal framework?
- To avoid taxation
- To limit liability (correct)
- To secure external financing
- To increase flexibility in management
In most jurisdictions, what drives the selection of a particular form of business organization by the proprietors?
In most jurisdictions, what drives the selection of a particular form of business organization by the proprietors?
- Limitation of liability (correct)
- Tax efficiency
- Privacy of financial data
- Flexibility in management structures
What term is commonly used in civil law countries to refer to both partnerships and limited companies?
What term is commonly used in civil law countries to refer to both partnerships and limited companies?
- 'Enterprise'
- 'Firm'
- 'Company' (correct)
- 'Corporation'
Which form of business organization is characterized by being owned and operated by a single individual?
Which form of business organization is characterized by being owned and operated by a single individual?
What are some general characteristics shared by forms of business organizations across different jurisdictions like the UK, USA, and France?
What are some general characteristics shared by forms of business organizations across different jurisdictions like the UK, USA, and France?
In civil law countries like France, what term is used for a general partnership?
In civil law countries like France, what term is used for a general partnership?
What is the distinguishing feature of a 'company' in common law jurisdictions?
What is the distinguishing feature of a 'company' in common law jurisdictions?
Which form of business organization has the advantage of easy formalities and only being subject to personal income tax?
Which form of business organization has the advantage of easy formalities and only being subject to personal income tax?
What is a disadvantage of a sole proprietorship business organization?
What is a disadvantage of a sole proprietorship business organization?
What is a consequence of a proprietor being fully liable on contracts and legal obligations?
What is a consequence of a proprietor being fully liable on contracts and legal obligations?
Why may a business cease to exist if the owner of a sole proprietorship dies or becomes incapacitated?
Why may a business cease to exist if the owner of a sole proprietorship dies or becomes incapacitated?
Which business organization structure allows creditors to go after the owner's personal assets in case of losses or lawsuits?
Which business organization structure allows creditors to go after the owner's personal assets in case of losses or lawsuits?
Which legal entity is equivalent to a British Private Limited Company (LTD) and a US Limited Liability Company (LLC)?
Which legal entity is equivalent to a British Private Limited Company (LTD) and a US Limited Liability Company (LLC)?
Which type of company has access to the capital markets and can list its shares on a stock exchange?
Which type of company has access to the capital markets and can list its shares on a stock exchange?
In a SAS company, which corporate body is compulsory according to the law?
In a SAS company, which corporate body is compulsory according to the law?
What is the minimum share capital required for setting up a SARL company?
What is the minimum share capital required for setting up a SARL company?
Which type of company is considered more flexible than SARL but does not have access to the capital markets?
Which type of company is considered more flexible than SARL but does not have access to the capital markets?
Which type of company is particularly relevant for small and medium-sized companies due to its simple rules and regulations?
Which type of company is particularly relevant for small and medium-sized companies due to its simple rules and regulations?
What is a key characteristic of a company with limited liability?
What is a key characteristic of a company with limited liability?
What is one of the consequences of a company having a legal personality distinct from its human members?
What is one of the consequences of a company having a legal personality distinct from its human members?
How does the limited liability of members in a company protect them?
How does the limited liability of members in a company protect them?
What happens if a company's assets are not enough to cover its debts?
What happens if a company's assets are not enough to cover its debts?
Which is not a feature of a company with limited liability?
Which is not a feature of a company with limited liability?
What does it mean when it is said that a company can sue and be sued in its own name?
What does it mean when it is said that a company can sue and be sued in its own name?
In an SA (Société Anonyme), what is the minimum initial share capital required?
In an SA (Société Anonyme), what is the minimum initial share capital required?
What characteristic of a branch distinguishes it from a subsidiary?
What characteristic of a branch distinguishes it from a subsidiary?
Which type of SA management structure includes both an executive and supervisory board?
Which type of SA management structure includes both an executive and supervisory board?
Why is an SA considered complex and not suitable for first incorporations?
Why is an SA considered complex and not suitable for first incorporations?
What type of entity must have its director as an individual according to the text?
What type of entity must have its director as an individual according to the text?
