Management and Organizational Studies 2275A/B Lecture Notes - Lecture 6: Limited Liability Partnership, Sole Proprietorship, Limited Liability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

This chapter introduces and compares the three basic forms of business associations: the sole proprietorship, the partnership and the corporation. The focus is on the partnership form as there is little law pertaining to the sole proprietorship as such. The following two chapters (15 and 16) are devoted to a detailed examination of the corporate form. In comparing the three forms from the general perspective taken in this chapter, it is useful to emphasize the importance of the agency relationship introduced in the preceding chapter (13). Sole proprietorship often utilizes the services of an agent as it is difficult for the sole proprietor to do everything herself. Partners in a partnership are agents for the partnership. A corporation can only conduct business through agency. In addition to comparing the basic forms of business vehicles, this chapter introduces several arrangements or methods of doing business. This assists the student in understanding the distinction between a business form and a business method.