MGM101H5 Lecture Notes - Lecture 4: Legal Personality, Limited Liability Partnership, Limited Partnership

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Corporation business that is a separate legal entity (provincial or federal), that is are not held liable. May be sole owner, partnership, or group owned. Takes up about 69% of business model. Everything that goes on in the business are accounted for. Everything that the owners do are accounted for. In terms of marketing, you are seen as more credible, You can own a company and hire separate managers reliable, and competent (therefore you can sell the company) Owners have limited liability (i. e. business gets sued, creditors only can sue the assets of a corporation, not the owners goods) People want to create separate legal entity to protect themselves. Other fees therefore it is more expensive to run a corporation. Private not traded on stock exchange (limited to 50 or. Public shares are traded in stock exchange and ownership few stockholders) is widely owned.