LAW 122 Study Guide - Midterm Guide: False Statement, Estoppel, Limited Liability Partnership
5 Jun 2016
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Week 5 (chapter 21) basic forms of business organizatons. Sole proprietorship conducts a business on their own (most suitable for small businesses) Advantages: least costly to establish, operate, and to dissolve. : unrestricted and unlimited personal liability of the owner"s assets: barrier to raising capital (money) Legal requirements: provincial registration of the business name, business license for certain types of activities (e. g. taxi operation) Partnership (firm) is a common law business organization arranged in provincial statutes. Contrary agreement between partners if a partner leaves, business is terminated unless stated otherwise. For income tax purposes, the income or loss is calculated at the firm level and then allocated to each partner for according to their entitlement (what they"re allowed to have) General partnership: there is no requirement for a written agreement or registration, all benefits and liabilities of the partnership applies directly to both persons (joint)
