COMMERCE 1E03 Chapter 6: Chapter 6 – Forms of Business Ownership.docx

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1E03
• Professor: Rita Cossa

Document Summary

One key success in starting a new business is understanding how to get the resources you need. There are 3 major forms of business ownership: sole proprietorship, partnerships, corporations. Sole proprietorship: a business that is owned and operated by one person, without forming a corporation. The business and the owner are a single entity. Almost 24% of all registered businesses in canada fall under this form of ownership. Partnership: a legal form of business with two or more parties. Corporation: a legal entity with authority to act and have liability separate from its owners. Liability: for a business, it includes the responsibility to pay all normal debts and to pay: because of a court order, because of law, for performance under a contract, for damages to a person or property. They can also claim any business losses against other earned income.