COMMERCE 1B03 Chapter 6: Chapter 6.docx
5 Oct 2014
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2. being your own boss: pride of ownership. 5. no special taxes - taxes as the personal income of the owner, and the owner pays the normal personal income tax rate on that money. 1. unlimited liability/the risk of personal losses - the responsibility of business owners for all of the debts of the business. 5. few fringe benefits - you have no paid health insurance, no paid disability insurance, no sick leave, no vacation pay. 6. limited growth -relies on its owner for creativity, business know how and funding. 1. more financial resources - pool their money and credit, easier to pay rent, utilities, etc. 2. shared management and pooled/complementary skills and knowledge -provide different skills and perspectives. 4. difficulty of termination partnership agreements: legal document that specifies the rights and responsibilities of each partner. 1. registration; articles of incorporation: a legal authorization from the federal or provincial/territorial gov"t for a company to use the corporate format.
