Journal Of Business Law: Economics For Business

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

Journal Of Business Law: Economics For Business

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

Journal Of Business Law: Economics For Business

322 Downloads3 Pages / 639 Words

Why were limited liability companies developed? Could a modern global economy be run on the back of partnerships?

Liability is said to be limited when a person’s pecuniary responsibility, in relation to his investment in a company or partnership is limited to a fixed amount. In case a limited liability is sued, then the company is sued as a separate legal person and not its directors or shareholders. The member’s responsibility is limited as far as the actions of the company are concerned but the members may be held liable for their own actions.
Reasons why Limited liability Companies were developed
The basis on which limited liability companies were incorporated was that all debts incurred by the company are to be borne by the company itself. The directors or the shareholders of such companies are not to be held directly liable. These types of companies work on the principle that a company is a separate legal entity. The debts incurred by the company are its own liabilities. In the United Kingdom Limited Liability Partnership was introduced through the Limited Liability Partnership Act, 2000 and Limited Liability Partnership Regulations, 2001. In United Kingdom members of a Limited Liability Partnership might agree in their agreement to bear joint liable but can in no way held severally liable. This seems to be the prime reason for incorporation of these companies. Businesses in the United Kingdom had for long campaigned for changing rules relating to liability. Since the government was scared of the fact that businesses would move out, in case they are not given the status of limited liability,  LLPs were introduced in United Kingdom.
Another important reason was that incorporation of these companies were comparatively cheaper and it was presumed that these types of companies would be business friendly.[1]
Whether a modern global economy can be run on the back of partnerships
In case of partnership ownership of a business is divided amongst two or more persons. It allows more people to participate in the business which in turn brings in more capital and also brings in great expertise. Profits earned by a partnership business with unlimited liability are taxed as the income of the members. Since all members are at risk of losing money, in case the business incurs losses, the members would be more interested in running the business successfully as compared to limited liability partnership where the liability of the members is limited. Creditors would not be entitled to any claim on personal property of the members.[2]
It is much easier to form a partnership business as compared to a company. These partnership businesses are governed by less strict laws and the partners are free to decide how to run the business. Thus these types of organizations are flexible.[3]
In case of partnership prospective employees may be given incentive of becoming a partner and thus attracted to business. Since a partnership has more than one owner, each having different skills and expertise, there happens to come together a huge pool of acquaintance. Partnership businesses are also much more effective cost wise.[4]
Thus in view of the above discussion we can say that a modern global economy can be run on the back of partnership business.
Freedman, Judith, ‘The limited liability partnership: pick and mix or mix-up?’ [2002] Journal of Business Law.
Mulhurn, Chris, and Howard R. Vane, Economics for Business, 2012.
TheCompanyWarehouse Blog, ‘Advantages and Disadvantages of Partnership – TheCompanyWarehouse Blog – Company Formation and Business Startup Advice’, 2010.,2015
[1] .  Judith Freedman, ‘The Limited Liability Partnership-pick and mix or mix up’ [2002] Journal of Business Law
[2]  Chris Mulhearn and Howard R. Vane, Economics for Business, 2012
[3] TheCompanyWarehouse Blog, ‘Advantages and Disadvantages of Partnership – TheCompanyWarehouse Blog – Company Formation and Business Startup Advice’, 2010
[4], ‘Partnership Advantages and Disadvantages’, 2015

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.


Yes, alert me for offers and important updates


Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 3 pages


*The content must not be available online or in our existing Database to qualify as

Cite This Work
To export a reference to this article please select a referencing stye below:


My Assignment Help. (2016). Journal Of Business Law: Economics For Business. Retrieved from

“Journal Of Business Law: Economics For Business.” My Assignment Help, 2016,

My Assignment Help (2016) Journal Of Business Law: Economics For Business [Online]. Available from:[Accessed 19 December 2021].

My Assignment Help. ‘Journal Of Business Law: Economics For Business’ (My Assignment Help, 2016) accessed 19 December 2021.

My Assignment Help. Journal Of Business Law: Economics For Business [Internet]. My Assignment Help. 2016 [cited 19 December 2021]. Available from:

.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}


Thank you for your interest
The respective sample has been mail to your register email id


$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1

Account created successfully!
We have sent login details on your registered email.


Password: has been recognized as the safest dissertation help company in Australia. We conduct a rigorous interview process to select most experienced and talented dissertation experts. This is how, we fulfill students search can someone do my dissertation perfectly or who can write my dissertation plagiarism free and provide them needed academic assistance. Apart from writing help. we also provide dissertation editing services to help students submit perfectly written dissertation.

Latest Business Law Samples

div#loaddata .card img {max-width: 100%;

BU1112 Business Law
Download :
0 | Pages :

Course Code: BU1112
University: James Cook University is not sponsored or endorsed by this college or university

Country: Australia

Part A
Whether Stella is considered as an employee of PRX?
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Australia South Lake Management health finance management  University of New South Wales 

BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :

Course Code: BSBWHS605
University: Swinburne University Of Technology is not sponsored or endorsed by this college or university

Country: Australia

Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA 

BUSN331 Business Law
Download :
0 | Pages :

Course Code: BUSN331
University: Centennial College is not sponsored or endorsed by this college or university

Country: Canada

In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration 

LA1040 Contract Law
Download :
0 | Pages :

Course Code: LA1040
University: University Of London is not sponsored or endorsed by this college or university

Country: United Kingdom

A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
Download :
0 | Pages :

Course Code: TLAW202
University: Top Education Institute is not sponsored or endorsed by this college or university

Country: Australia

If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …


Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog