MGMT 1P93 Lecture Notes - Lecture 5: Double Taxation, Market Power, Equal Voice
2 Feb 2017
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Document Summary
Business formation: choosing the form that fits lecture 5 notes- february 1, 2017. Businesses owned and usually managed by a single individual. Voluntary agreements where two or more people act as two co-owners; there are several types. In both partnerships and sole-proprietorships the business is an extension of the owners. Corporations are faceless because we don"t see the owner. Businesses can always change their form of ownership. Need to file a articles of incorporation to show the government the existence of a new corporation. Inputs every aspect of establishing and operating the business: Advantages of sole proprietorships: initial set-up cost, profit distribution, tax implications, regulations implications, available sources of funds, personal liability. Limited ability to attract and maintain talented employees. Make partnerships to help you with the side of business that you are not keen on. All partners have the right to participate in the management of the firm, and all share unlimited liability.
