MGSC30H3 : Text reading notes for Partnerships, Sole Proprietorships and Trusts (Ch 16 in 9th edition / Ch 17 om 8th edition)
17 May 2011
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Document Summary
Ch 17 law of sole propr ietorsh ip and partnersh ip. Simplest form of business org as far as the law is concerned. The sole proprietor, as the owner of the business, owns all of the assets, is entitled to all of the profits, and is responsible for all of the debts. Makes all of the decisions in the operation of the business and is directly responsible for its success or failure. Major disadvantage: limited ability to raise capital and management-skill limitations. Provincial legislation governing professions (medicine, dentistry, law, architecture, etc), semi-professional and skilled trade activities: municipal skilled trades, the operation of taxis, and many other service-oriented business. Advantage: freedom in the operation makes it the most attractive form of business org for a new, small enterprise. Also a simple form of business org. Lending institutions are generally more willing to extend credit in larger amounts to a partnership than a sole proprietorship.
