MGM101H5 Study Guide - Midterm Guide: Limited Liability, Sole Proprietorship, Double Taxation

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Mgm101 test #1 short answer questions: three of the more common organizational forms in canada include sole proprietorships, partnerships and corporations. Discuss one advantage and one disadvantage of each form from an owner"s perspective. (6 marks) One for discussing an advantage from an owners perspective and one for discussing a disadvantage from an owners perspective. Must actually discuss how they are advantages or disadvantages from an owners perspective, not just list them. You can assign a half mark for any advantage or disadvantage they accurately list but do not properly explain. (see nickels text pages 171 to 181) Adv- easy to start requiring minimal investment, full control and retention of profit, no special taxes and less regulation. Dis- unlimited liability, can lack management expertise, limited resources, huge commitment, limited lifespan. Adv- access to more capital, resources and expertise, shared responsibility and risk, less regulation compared to corporation and no special taxes, can include limited liability.