Study Guides (248,338)
Canada (121,491)
Business (309)
BUSI 2601 (13)
all (5)

2601 review.docx

16 Pages
Unlock Document

BUSI 2601
All Professors

Chapters 1516Corporation and Business ProcessCorporation predominant business vehicle in modern commerce because it is a separate legal entity If Adam decides to run his computer business as a sole proprietorship he is gambling his personal assets if the venture fails However if he decides to run as a corporation the same business none of the assets are at risk When things go bad you dont know whats going onExit StrategiesJim Balsillie sold all his BlackBerry shares 100 cashing out of RIM and made half a billion you can restart with the moneyYou have to plan for things to go wrong Exit Strategy so that you are protectedBest way to get married is to prepare for your divorce People in business are very mean theyll dump you if they find something betterTop 4 Benefits of Incorporated1Separate Legal EntityIn law a company is called a corporationcorporations has the same rights as a natural person you and I in that they can go to court and sue for wrong doings The only thins a corporation cannot do is have relationship with kids adoption get married and have an estateCant do these things because of tax sheltersThink about the number of Canadians who have adopted Chinese girls Do you know how much this costs Up to 100000 In business many people like to deduct those expenses Why Separate legal entity2Limited Liability ConceptThe approach where the shareholders are only liable for the value of their investment you are not responsible for the debts of the business unless you have signed off personally on the debts ie franchisesFranchisors dont care about you You have to sign a waiver for legal protection and are responsible for all your assets They have you on a hook Thats the problem with the system You so badly want to succeed that you are blindedPeople tend to be blinded by the prospect of succeeding Close to 35 of Canadians in 1999 has share on the stock market After the collapse of the stock market we were down to 8 Warren Buffethe goes for long term fundamental strategies of business Bought Heinz3Lower TaxationEven though there are double taxes never meet the highest individual tax ratemost in Canada is 26America will be the largest petroleum exporter by 2030more that Saudi Arabia4ContinuityWhen I sell my shares someone else buys them and continues ownership of the business Public held corporation50 or more different SHsCloseheld corporation Private CorporationLess than 50 different SHsoThe bulk of the Canadian economy is in the hands of closed held corporationswhy Doesnt have to release financial statements strategies that Public do oConsequently if they dont have to reveal the books we do not know who owns what sharesIncorporate Create the BusinessForm 1 of Articles of Incorporations the actual template to create your corporation otakes 23 of the voting rights to amend that document ie change the business nameoonce it is submitted and you dont have those 23 of voting rights you might need alliances to change it ie RIM officially changing its name to Blackberry23 of the executives that show up at the AGMoThree provinces have voted to abolish the senate of the Government of CanadaElements of the FormBox 1Business Name choose to have a name or numbered name granted to youaThe name is not used or speltsounds like another name in the same fieldalso includes email namesoNuden windows and doors replacementand Nuden gentlemans club male strip club near St LaurentbCannot be obscene or in violation of our social normsoShit Disturber cannot be usednoFuckdef under the consent of the king cA restrictive name oUnited Nations RCMP Government of CanadadWords which are offensive in foreign languagesoCocaColabackwards means No Mohammed No Meccacompany did not know this at the timeoRootsin Australia is a slang word forlets have sexBox 2Territory where do you want to register your head office ocannot be a PO box has to be a civic addressBox 3Classes of Sharesyour call of how many classes of shares are you looking to havewhatever class you have you need need to defineamax amount of classes and sharesbthe rights and privileges associated with that classCommon Shares ohave the right to voteoright to dividendoright to distribution of assets upon dissolution
More Less

Related notes for BUSI 2601

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.