MGMT 1P93 Lecture Notes - Lecture 11: Canada Business Corporations Act, Sole Proprietorship, Limited Liability
26 Oct 2018
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Limited liability owners may lose their investment in the company, but their personal assets are protected. Initial cost of setting up the business. Types of taxes (if any) the firm will pay. Source of funds available to fund operations. 3 forms of business ownership: sole proprietorship: Each partner has the right to participate in firm management and share profits. Each partner has unlimited liabilities towards company debts: corporation. Recognized as a separate legal entity in the eyes of either the canada business. Corporations act (if it has been incorporated federally) or by 1+ provincial statutes ( if it has been incorporated provincially) Must file a form called the articles of incorporation in the appropriate jurisdiction where the corporation wishes to do business -- paying incorporation fees and following through with certain requirements. Legal entity which is distinct from its owners. Can legally engage in virtually any business activity that an individual can.
