COMMERCE 1E03 Midterm: Commerce Midterm Two.docx
17 Apr 2012
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Liability: responsibility to pay all normal debts and to pay because of a court order or law, for performance under a contract or payment of damages to a person or property in an accident. Sole proprietorship: business owned and operated by one person without forming a corporation: one owner, oldest form of an organization, figure: more than 544,800 businesses and they generate less than 3% of revenues. Can also claim any business losses against earned income to decrease taxes: less regulation- regulated by provincial/territorial governments but are less regulated than corporations. Partnership: legal form of business with two or more parties. General partnership: all owners share in operating the business and in assuming liability for the business"s debts. Limited partnership: one or more general partners and one or more limited partners. General partner- has unlimited liability and is active in managing the firm. Limited partner- invests capital but doesn"t not have management responsibility or liability for losses beyond investment.
