LAW 122 Lecture Notes - Lecture 8: Sole Proprietorship, General Partnership, Fiduciary
24 Dec 2015
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No separation between business and proprietor (owner): proprietor entitled to all income, proprietor liable for all obligations, proprietors assets available for business debts, business income (loss) on personal income, proprietor cannot be employee of business. Laws generally applicable to businesses apply to sole proprietors: provincial registration for business name. Only if name other than personal name such as: Arises once person begin to conduct business e. g. start cutting someone"s lawn for: partnership (general partnership, limited liability partnership, limited partnership. A partnership exists when two: don"t need to actually make money to have a partnership, just need to carry on business together with a view to making money. Partnerships creation automatic when relationship begins: no formalities are required. Every partner is an agent of the firm and has the ability to bind partnership. Partner are in fiduciary relationship with each other- each is required to act honestly and in good faith with a view to the best interest of the partnership.
