MGTA01H3 Lecture : Chapter 3 & 4 Lecture

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Ingrid L.Stefanovic

Document Summary

Partnerships, corporations and strategic alliances: sole proprietorship, one person carries on a business, no formalities are required, registration of business name desirable, no legal requirements or costs, tax losses can be offset against other income, drawbacks. S unlimited liability of proprietor for debts and liabilities of the business. S no continuity what happens when the owner dies. S depends on resources of the proprietor, and raising money can be difficult: partnerships, a partnership is formed when: S with a view to profit: partners. Involved directly in the business and make business decisions themselves. S tax losses flow through to the partners. S law, accounting can only be practiced in partnerships in ontario: disadvantages. S unlimited liability of partners for the debts and liabilities of the partnership business. S limited partnerships allow investors some protection and give advantage of tax loss flow throughs: limited partnership. S used if business has high losses at start of business.