Outline and critically evaluate the advantages and disadvantages of setting up business as a sole trader, a partnership, or a private limited company.

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Outline and critically evaluate the advantages and disadvantages of setting up business as a sole trader, a partnership, or a private limited company. · Explain via a step-by-step guide how a private company limited by shares may be formed. Area to study. Once registration has been successfully completed a new legal person is created: its legal liabilities are entirely separate from those of its members. What the courts have described as a ‘veil of incorporation’ prevents the members from being held responsible for the company’s liabilities, however close their connections with it. Evaluate the circumstances when courts have been prepared to lift the ‘veil of incorporation’ and hold directors and other members personally responsible for their actions. Area to study When Elon, Jeff and Mark created their company Wizard Electricals Ltd they all agreed to include the following clause in the Articles of Association: – ‘In the event of there being a resolution before a general meeting to dismiss a director, that directors shares shall carry 3 times the normal number of votes.’ When they formed the company Elon, Jeff and Mark were named as the directors, and the company was issued with 10,000 shares – Elon, Jeff and Mark all held 2,000 shares each and their family and friends held the remaining 4,000. Unfortunately, Elon and Jeff have had a violent disagreement with Mark over the future direction of the business and they have both agreed that they would like Mark to be dismissed as a director of the company. · Advise Elon and Jeff as to which course of action they should follow to remove Mark as a director. please add two example to support your case studie

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