It Will Decide to Set up a Restaurant Business Because I Have a Great Interest in This

Develop And Update The Legal Knowledge Required For Business Compliance (THHGLE20B)

RAMANDEEP KAUR C61443 Assessment – A

Report on ownership structure: Deciding about ownership is very important . the structure that should suit your needs , and in doing this exactly what time is needed . There are four main ownership structure : 1. Sole trader 2. Partnership 3. Company (two types ) 4. Trust

As I have decided to open a restaurant because I am pretty much interested in hospitality business . My first priority will be in registering my restaurant’s name . so I have to choose a professional name . the name will be ‘KHANA KHAZANA’ . It will be a big one with seating capacity of 75 people . it will also have a large kitchen , cool rooms , freezer . it will be a single storey building , on ground floor we will have kitchen , cool rooms , reception and 26 people sitting capacity . rest of the 49 seats will be on 1st floor . I will start my business as a sole trader. Because it is the cheapest and simplest form of business structure. A sole trader is the owner and operator of a business who makes all the decisions and is responsible for all the actions of the businesss. Interestingly there is no difference between a sole trader as a person ar sole trader as a business .

Local council approval is usually required to operate a business at a specific location . approval is done by lodging a development application with the local council which in turn will indicate during what hours the business can be operated .

Food business will also require a health clearance permit from the council which will see that premises are fit for preparing and serving the food stuff . As this is a business which will be producing wastes so r waste permit is also required .

I will also go for some other activities in my restaurant i.e. bar , karaoke . For the bar I have to get a license from the VICTORIAN LIQUOR LICENSING . For karaoke I need to have a stage and little bit of arena . Also I need to pay my employees so I need to have their TAX FILE NUMBERS OR AUSTRALIAN BUSINESS NUMBER by Australian taxation office . I will be responsible for the health and safety of the employees so have to go for OCCUPATIONAL HEALTH AND SAFETY CODE . I will need equipment permits from the local environment protection authority .

There are some advantages and disadvantages for opening a business as a sole trader which are discussed following:

ADVANTAGES:  The business is easy to operate and inexpensive to set up  Because I am the owner of the restaurant so I will keep all the profit and I have to bear loss as well.  One benefit for opening a business as a sole trader is that there is no lengthy documentation.  I would have all the control on the business and I can decide business hours, when I have to open restaurant when I have to close it.  I can choose the place where I want to open my restaurant and I don’t have to make any arguments with others about that, because everyone has there on point of view if I have my business in partnership then I have to listen them as well.  I will make all decisions I can decide which persons I want to employ in my restaurant.  If my business is not running successfully then I can decide to close my business without any formalities.

DISADVANTAGES:  There is no one to consult.  Many owners have problems with the administration specially with the GST .  One can have some monetary problems .  There is unlimited liability .  If my business becomes more busy and successful then it’s very hard to handle all things, then I have to employ a manager, but he will not run my business as efficiently as I can.  If my business fails then I will loss my all assets.  All burden of restaurant is on my shoulders.

Assessment B -Case study

Case study- 1

After reading the case study I came to know that customer did not buy any stuff so he did not pay anything. It’s Steve’s mistake that he rung up all the items on the cash register. If the customer is a regular customer it is a responsibility of a good seller to take care of them. If the customer had purchased some stuff and at the customer mistaken by taken more items and then if want to return back some items then as a good seller you should to legate minor instead of rigidly followings the rules. On the other hand its more of loss because next time the customer want be coming to the shop and as a customer had gone without purchasing any thing the loss is already their for their existing entry . Customer can also report against Steve about this harassment.

Case study- 2

If we notice here the dead lines of the acceptance was 19th December but the date Steve received the letter was 15th December. So when he replies for the acceptance, supplier gets it late. So it is not the mistake of both parties. The point is either the supplier should have posted the letter in such a way that the entire customer receives it before 1 week of the dead lines, so that everyone can precede it properly. Secondly if the supplier should keep deadline bit late and should consider the posted date not the receiving date. By this way, everyone will get the chance providing a customer satisfaction. It is a valid contract because in this case acceptance was made when the acceptance was posted. Moreover if the supplier did not receive the written acceptance, then it was not Steve’s fault and supplier was told by Steve on telephone to accept the offer. In this case consequential loss (business interruption) remedy is available for this business. Steve can claim for the loss of profit due to partial stoppage.

Case study- 3

From case study I realize that Steve got only 10 minutes to accept the loan contract, in this time he can not understand properly the terms and conditions of the agreement. Finance company should send a hard copy or soft copy at least 4 hours before the time for contract to get signed, so that Steve can understand the whole terms of contract. If it is not possible for a finance company to send a contract advance, they should send a person at least 1 hr before the contract to be signed that Steve can browse the application and can understand all the specifications in the contract. Voluntary consent: As we know when Steve enters sign a contract by replying on the false statement made by the finance company representative and he get only 10 minutes to get sign the contract. So this is a valid contract related to misrepresentation of time. Breach of contract: As this is a condition term so through this contract Steve can claim compensate for the interest of 2% because he was not made aware of this earlier? Because in this case damage is the main common law remedies.