Class Notes (1,100,000)
CA (620,000)
UTSC (30,000)
MGT (300)
MGTA01H3 (400)
Lecture

Lecture 4


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

This preview shows half of the first page. to view the full 2 pages of the document.
MGTA03IntrotoManagementLecture4
Chapter4:FormsofBusinessOrganization
MainPointsthisLecture:
SoleProprietorship
Partnerships
Corporations
Intro
CanadaÆFreemarketeconomy
Entrepreneursneednopermission,fees,forms

SoleProprietorship
Easiestwaytoformbusiness
Mostcommonformofownership
Youaresoleproprietors
Businessrunby1person,whomakesalldecisions,keepsallprofits,andresponsibleforalldebts
Advantages
Easytosetup;norequirements,noaccountingneeds
Cheaptosetup;$60r$70ifregistered,$0ifnotregistered(doesn’tneedtoberegistered)
Disadvantages
Limitstoowner’sskillsandresources
Hardtogetloans
Personalandunlimitedliability
Partnership
Businessowned/operatedby2+peopleactingtogether
Advantages
2+heads
Moreresources,credibility,andcontacts
Disadvantages
Personal,Unlimited,Jointandseveralliability
(JointandseveralliabilityÆallpartnersresponsibleforanydebts)
PartnershipAgreements
Agreementbetweenpartners,whichincludes;amountofmoneyeachpartnercontributed,the
responsibilitiesofeachpartner,howpartnersarepaid,andprofitsaredistributed.
Betweenpartners,andnotbindingonothers
GeneralPartnership
Simplestform
Allpartners; shareownership
Sharemanagement
Unlimitedandpersonalliabilitiesfordebts
www.notesolution.com
You're Reading a Preview

Unlock to view full version