LAW 122 Lecture Notes - Lecture 10: Corporate Finance, Natural Person, Fiduciary

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Omar Ha Redeye

Document Summary

Comes into existence when a person carries on business on their own without adopting any other form of business organization. The sole proprietor is exclusively responsible for performing all contracts entered into the course of the business, including contracts with customers, suppliers, employees and lenders. The sole proprietor is exclusively responsible for all torts committed personally in connection with the business. The person is also vicariously liable for all torts committed by employees in the course of their employment. For income tax purposes, the income of loss from the sole proprietorship is included with the income of loss from other sources in calculating the sole proprietor"s personal tax liability. Unlimited liability means that third parties may take all the sole proprietors" personal assets to satisfy the business obligations. The name of a sole proprietorship must be registered if that name is something other than or more than the proprietor"s personal name: ex.