BIOB10H3 Chapter Notes - Chapter 4: Legal Personality, Limited Liability, Limited Partnership
Document Summary
Majority of businesses in canada, small portion of total revenues. Advantages: easy to form, personal tax benefits, self starters. Disadvantages: personal unlimited liability dissolves on owner"s death. Partnership: two or more people combine resources to operate a business. All partners personally liable: limited partnership: at least one general partner (active management) and limited partners (liability limited to investment, become general if they participate in the business). Advantages: combination of skills, loan acquisition, individual taxation. The corporation: separate legal entity (except cannot vote or marry). Board of directors: oversees the corporation and its operation in the best interest of the shareholders. Choose the president (responsible for internal management) and other officers to run the business. Sets policies on paying dividends, financing, executive salaries, etc. Chief executive officer (ceo) responsible for overall performance. Inside directors: members of board of directors that are also full time employees of the corporation.