LAWS 3206 Study Guide - Midterm Guide: Canada Business Corporations Act, Legal Personality, Canada Revenue Agency
9 Feb 2018
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Lecture 1 not applicable to midterm exam: partnerships = profit when two or more individuals or corporations or legal entity come together for the purpose of earning profit. Partnerships are established in order to peruse profits. A binds b and they become agents to each other. Partnerships are established by a partnership agreement, ont gov. applies an umbrella rule to all partnerships even if they don"t have a written partnership agreement (profits are now split 50/50). Personal acquisitions are available for losses in business (lawsuits): sole proprietors run a business on your own; can employ someone and give them a salary. Source deductions are taken off all employees pay by employer: corporations a separate legal person, apart from the people that run their business through it. Limits the liability of assets; they can incorporate. Partners become shareholders, liability is limited to cooperate funds; no personal funds will be touched if losses occur.
