BUS 393 Lecture Notes - Lecture 7: Sole Proprietorship, Fiduciary, W. M. Keck Observatory

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: ALL

Document Summary

Three main forms of businesses, each one has a liability (overview: you can start 3 types of businesses: sole proprietorship, partnership, corporation. If things go wrong (harm caused by employees) you are liable. Insurance: limited protection and costly: taxes are higher since personal income tax rates. Can claim expenses: process is simplest. Negligence: three types of partnerships, general partners: unlimited personal liability and fiduciary duties to each other. Loyalty, fairness, avoid conflicts of interest: limited partners: investors that only risk their investment. Can"t participate in day 2 day decisions. 1 general partner with limited partners: limited liability partnerships: partners are not liable for partners" mistakes. Everyone has a limited liability for what you have put in the partnership: process is a contract. Even if you do not create a partnership agreement but only act as one, it is assumed you are. Partnership case: mcdonic et al v. heatherington et al.