MGM101H5 Lecture Notes - Lecture 4: Whistleblower, Government Spending, Invisible Hand
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MGM101H5 Full Course Notes
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Document Summary
Sole proprietorship: business that is owned and operated by one person without forming a corporation. Advantages: ease of start/end, your own boss, pride of ownership, leave legacy, retain profit, no special taxes, fewer regulations. Disadvantages: unlimited liability, limited financial resources, difficult in management, time commitment, few fringe benefits, limited growth, limited life span. Partnership: legal form of business with two or more parties. Advantages: more financial resources, shared management, longer survival, no special taxes. Disadvantages: unlimited liability, division of profits, disagreements among partners, difficult to terminate. Corporation: legal entity with authority to act and have liability separate from its owners. Advantages: more money for investment, limited liability, separation of ownership/management, ease of ownership change, perpetual life, size. Disadvantages: initial cost, paper work, two tax returns, termination difficult, stockholder and board conflict, double taxation. Professional corporations: canadian-controlled private corporation engaged in providing professional services (accountants, architects, lawyers, dentist ) Non-resident corporations: has head office outside of canada.
