MGTA05H3 Lecture Notes - Lecture 3: Ontario Securities Commission, Sole Proprietorship, Privately Held Company
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MGTA05H3 Full Course Notes
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Document Summary
Tax losses can be offset against other income. Unlimited liability of the proprietor for debts and liabilities of the business. No continuity what happens when the owner dies. Depends on resources of the proprietor, and raising money can be difficult. Involved directly in the business and make business decisions themselves. Tax losses flow through to the partners. Law, accounting can only be practiced in partnerships in ontario. Unlimited liability of partners for the debts and liabilities of the partnership. Common form for carrying on business that becomes larger than the sole proprietorship. Corporation is created by filing articles of incorporation with ontario or federal governments. Owners own a share in the corporations. Owners are called equity holders or shareholders. Owners do not own the assets of the corporation. Corporation responsible for its own debts and liabilities. Directors have a duty of highest good faith to the corporation in managing the business.
