COMMERCE 1B03 Chapter Notes - Chapter 6: Limited Liability Partnership, Limited Liability, Sole Proprietorship
21 Oct 2016
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Disadvantages: more nancial resources, unlimited liability, shared management and pooled/ complementary skills, division of pro ts, longer survival, shared risked, no special taxes, less regulation, disagreement among partners, dif culty of termination partnership. Disadvantages: limited liability meaning only responsible for losses up to the amount they invested, initial cost. 2) ability to raise more money for investment selling stock: extensive paperwork, size, perpetual life, double taxation, two tax returns, ease of ownership change, size, ease of attracting talented employees, dif culty of termination. Separation of ownership from management: possible con ict with shareholders and board of directors. Corporate governance refers to the process and policies that determine how an organization interacts with its stakeholders both internal and external. Articles of incorporations are legal authorization from the federal or provincial/territory government for a company to use the corporate format. All public corporations must le annual reports containing basic data about themselves.
