Class Notes (835,600)
Canada (509,275)
MGTA01H3 (348)

Lecture 4

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Management (MGT)
Chris Bovaird

LECTURE 4: TYPES OF ORGANIZATIONS Sole proprietorship - Many of us are already proprietors - A business owned and operated by a single person - The business is really an extent of you - If the business is failing, costs growing or revenues shrinking then the person has to pay the debts - Cannot hide behind the proprietorship - It is easy to set up + cheap - Accounting aspects that need to set up before the business is started - HST sales taxes Ontario moved to the harmonized sales tax - Getting a HST number is required - Companies have to charge HST on all applicable goods and services and then remit those to the government - Disadvantages limits resourcefulness + skills - Banks dont take risks: they make money on the transfer of money - Dont have pools money sitting there - Hard to get finances - Two methods of financing 1) wealthy relative 2) the bank - lends you money when you have an asset (Collateral) as part of the condition on debt default - If not in a position to get a mortgage, you develop a good credit rating - Start with what they give you and have track record of risk - A personal visa card used well, the bank will increase the limit - Advantages - More resources
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