RSM225H1 Lecture Notes - Profit Motive, General Partnership, Shoppers Drug Mart
Document Summary
Three kinds of partnerships: general partnership ( gpp , limited liability partnership ( llp , limited partnership ( lp ) Two or more legal entities (individuals, corporations) owning and operating a business together for profit (2) Partnerships act ( pact ) says gpp arises automatically if 4 requirements met: (i) 2 or more legal entities. Two or more individuals, corporations (ii) carrying on an active commercial business. Active means ongoing business, not just isolated transaction(s) commercial enterprise (e. g. manufacturing, accounting practice), not just investment/co-ownership. Jointly owning securities or property for investment income active commercial business (iii) jointly owning and operating the same business together distinguished from cross-marketing or promotion between separate businesses (e. g. shopper"s drug mart and. Swiss chalet each offering discount coupons for the other"s products) Distinguished from merely sharing premises or assets. E. g. several accountants sharing same office premises and photocopier/fax to reduce overhead cost. Distinguished from employer/employee relationship (iv) to make and share profits.
