BU231 Lecture Notes - Limited Liability, Sole Proprietorship, Fiduciary
Document Summary
Sole proprietorship: come into existence without formalities, can occur just by actions, subject to many regulations that apply to all forms of business, eg. municipal license is normally required for electricians, plumbers etc. If the name of business is different from the owner its must be registered (applies to all forms of businesses) Partnership: formed by two or more persons, natural individuals; legal corporations, advantage in that you can pool resources and knowledge together, disadvantages can result from disagreement (time to reach agreement), dishonesty. Creation of a partnership: partnership agreement (written or oral, main purpose is to set out as carefully and clearly as possible, the entire terms of the relationship: Nature of the business to be carried on. Duration of the relationship, method of terminating the partnership. 2: the partnership act sets out implied terms that fill in any gaps in a partnership agreement .
