MGM101H5 Lecture Notes - Lecture 2: General Partnership, Leveraged Buyout, Legal Personality
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MGM101H5 Full Course Notes
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Corporaions: 69% of all business in canada, is legally incorporated. Expensive to set up, (fees: lawyers, accountants, governments: the more shares you own, the more you inluence the companies decision (ex. Private: not traded on stock exchange, limited to 50 or fewer stockholders. Public: shares are traded on one or more stock exchange. Non-proit: performs public service, has special tax consideraions to encourage formaion. Owners/stockholders elect board of directors: bod represent shareholders, big shareholders can nominate themselves. Board of directors hire oicers (cfo, ceo: ceo report to bod, oten ceo is member of bod. All control, one single owner: make all decisions, but, take on complete risk, if business loses money, you lose money. Two main types of partnerships: general partnership, limited partnership. Two main types of partners: general partner. Merger; two or more organizaions decide to come together and form one organizaion. Verical merger; merging someone in supply chain (distributors, or retailers)
