Answer to Question #211253 in Finance for Sphesihle Zuma

Question

1.1 after the entrepreneur chooses a specific form of business, the business is established by complying with the legal requirements. There are general as well as specific legal provisions for the different forms of business. Discuss the general legislation of business your answer should focus on the following :

1.1.1 licensing

1.1.2 name

1.1.3 registration of trademarks, patents and design

1.1.4 contractual capacity

1.1.5 registration of the new business

Answer 1

1.1.1 licensing.

To legally start a business, you need a business license. This ensures that the business does not engage in illegal activities as well as it is means to raise government revenue.

1.1.2 name.

General law recommend that, if someone in a similar field to yours is already using a particular business or organization name, you should avoid using it, nor should you use a name that would sound similar.

1.1.3 registration of trademarks, patents and design

They provides an exclusive right to the owner and distinguishes the product from other similar products from other businesses. Trademark proves as intangible assets for the owner and protects the brand for a long time.

1.1.4 contractual capacity

refers to a company's legal ability to engage in an agreement with another party and be held liable to the terms of the contract. It is known that a company has a separate legal personality and is therefore capable of entering contracts with other parties for consideration.

1.1.5 registration of the new business

These laws ensures you avoid legal problems with the government, secures your reputation as a legitimate business and builds trust among suppliers, customers, and employees as well as fully market your brand and business everywhere.