LAW 122 Lecture Notes - Lecture 4: Authorised Capital, Search Report, Legal Personality

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Daniele Bertolini

Document Summary

3 types of business organizations: sole proprietorship: there"s (cid:374)o legal separatio(cid:374) (cid:271)et(cid:449)ee(cid:374) the sole proprietorship (cid:271)usi(cid:374)ess orga(cid:374)izatio(cid:374) a(cid:374)d the i(cid:374)d(cid:448). (cid:449)ho owns the sole proprietor. Comes into existence when a person begins to conduct business on their own, without adopting any other form of business organization. There is no formal registration but he/she must comply with all general requirements. Since there is no legal separatio(cid:374) (cid:271)et(cid:449)ee(cid:374) (cid:271)usi(cid:374)ess orga(cid:374)izatio(cid:374) a(cid:374)d (cid:271)usi(cid:374)ess o(cid:449)(cid:374)er : proprietor is entitled to all income, proprietor is liable for all obligations, proprietor"s perso(cid:374)al assets are a(cid:448)aila(cid:271)le for (cid:271)usi(cid:374)ess de(cid:271)ts to a(cid:374)(cid:455) e(cid:454)te(cid:374)t (u(cid:374)li(cid:373)ited liability) Easy & inexpensive to create + easy to dissolve. Unlimited personal liability: general partnerships: 2+ people in a business. Comes into existence when two or more persons carry on business together with a view to a profit and are concerned with the expenses of the business. Liability regime: no separation between partner and partnership. All benefits of partnership accrue to the partners.