RSM225H1 Lecture 2: Rsm225 L2
Document Summary
Sole proprietorship: only one owner, no formalities required, owner personal liable for all spp debt, business do not file tax return, owner does. If its criminal or fraud, even not under their direct supervision, if they know it or could have know it and did not stop it, they are liable for the lost as well: do not file tax return. Limited partners cannot take part in the day to day management, or else they automatically become a general partner. Corporation: can be found under feral law or provincial law, public and private business corporation (federal, public and private business corporation/private professional corporation (provincial, not for profit corporation can be found under federal or provincial. Public vs private: trade share on market (regulated exchange) For profit vs not for profit: profit share through dividend or through selling assets after the corporation dissolved (entitled to the profit of corporation, non profit has members who do not entitled to the above.
