MGSC30H3 Chapter Notes - Chapter 17: Financial Statement, Strict Liability, Contributory Negligence
Document Summary
Chapter 17 law of sole proprietorship and partnership. A business where the sole owner is responsible for the management and debts of the business. Not a lot of capital to start a business, but has all the power to make decisions themselves. 2 or more people provides a better way to gain capital and expertise. Banks or more willing to give more credit to partnerships than sole proprietors. Partnership: a legal relationship between two or more persons for the purpose of carrying on a business with a view to profit, and it is not incorporated. If each party contributed capital and actively participated in the management of the business, then these actions would be indicative of the existence of a partnership. A partnership may be established by estoppel. If a person hold himself out as being a partner either by words or conduct they also may be liable as a partner.
