MGM101H5 Lecture Notes - Sole Proprietorship, General Partnership, Limited Liability

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

The three major forms of business own- ership are (1) sole proprietorships, (2) partnerships, and (3) corporations. One person owning and operating a business, without forming a corporation. In a sole proprietorship, the business and the owner are a single entity. As noted in figure 6. 1, almost 24% of all registered businesses in canada fall under this form of ownership. Liability is often just another word for debt, but it also has a wider and important meaning. For a business, it includes the responsibility to pay all normal debts. unlimited liability. The responsibility of business owners for all of the debts of the business. Partnership: general partnership, limited partnership, general partner, limited partner. A partnership in which all owners share in operating the business and in assuming liability for the business"s debts. Limited partnership a partnership with one or more general partners and one or more limited partners.