ENGR 301 Lecture Notes - Lecture 3: The Seller, Decision-Making, Limited Liability Partnership
18 Sep 2016
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Chapter 3 - canadian form of business organizations. Provincial and federal laws that will govern business operations. Assets of organization are by individual and considered as being part of the individual personal worth. If business is bankrupt, they may require you to sell your house. It is easy and inexpensive to set up. Tax advantage if business is not doing well. Lack of continuity if owner needs to be absent. Tax is dependent on income (higher income = higher rate) Many business fail because owners cannot find people to take it over. Difficult to raise capital because of insufficient personal assets to act as collateral. If banks cannot lend you money, then most owners turn to credit card (debt) - higher rates, high risk. Biggest source of money is usually family and friends. Formed with two or more people who decide to start a business. Such as engineering firm, law firm, and accounting firm.
