COMM 103 Chapter Notes - Chapter 13: Prime Rate, Limited Liability, Sole Proprietorship

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gregory Libitz

Document Summary

Chapter 13: intro to capital and financial markets. Five factors influencing what type of legal structure to use. Ease of set-up: to get the business up and running eg. gov regulations. Degree of control: the degree of ownership/level of decision making authority you want to possess within the business. Magnitude of risk: the level of financial, legal, and operational liability the owners are willing to accept. Required skills: the degree of expertise required to run the business successfully. As a company continues in the future and grows, it may be necessary to review these factors and change the structure of the company as the needs of the company and its environment changes. Easiest way to start a business: generally nothing more than registering name. No real creation of a separate business entity: the person is the business, the business is the person therefore, the person has 100% control. Unlimited liability any business debts must be paid by the owner.