ENVS 1000U Lecture Notes - Lecture 12: Legal Personality, Financial Statement
Document Summary
General partnerships- exists when two or more people carry on business together with a view to profit. For the case, all three r,i,j could be liable but it is only conclusion. Because it is partnership, and partnership works like that. Partnership can be formed even if them don"t realize. Unlimited, joint personal liability all partners are agents for each other and for the partnership. Partnership act: default rules share equally in the profits/loss. And all partners have the right to manage the partnership. A partnership automatically terminates on death or bankruptcy of any partner. Also can be terminated with notice from partner. It is your job to monitor all the partners, not the third party. Corporations a legal person, with a separate legal existence from its directors, shareholders, and officers. Key attribute: separate legal existence from its shareholders, directors and officers. Most important implication is limitation of liability, means someone can lose is investment in the business.
