BUS 393 Lecture Notes - Vicarious Liability, Fiduciary, Limited Partnership

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

Document Summary

Advantages: record/reporting burder = lighter, fewer government regulations, all profit = theirs. Any debts of business = sole proprietor. Personal assets = vulnerable: vicarious liability for employees. Investors become creditors, not participants (sole proprietor still controls) Relation between persons carrying on a business in common with a view to profit. Creation: contract stating nature of rights/obligations, partnership act. Governs relations between partners where there"s no contract. Unlimited liability: each partner responsible, responsible for other partners. No decision can be made without partners agreement. Partnership agreements: create diff classes of partners. E. g. senior partners: taxes @ personal rate. Provision of 2+ partners, they won"t dissolve: upon notice, project completed. Illegal/court orders: assets and personal to pay off liabilities. Limited liability: investor"s risk of losing only amount invested. Given if: don"t take part in management, there is 1 general partner, limited partnership is registered, name of limited partner not a firm name.