COMMERCE 1E03 Chapter Notes - Chapter 6: Credit Union, Leveraged Buyout, Horizontal Integration

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

Document Summary

The three major forms of business ownership are (1) sole proprietorships,(2) partnerships,(3) corporaions. A business owned, and usually managed, by one person is called a sole proprietorship. This is the most common form of business ownership. When two or more paries legally agree to become co-owners of a business , the organizaion is called a partnership. A legal enity with authority to act and have liability separate form its owners is called a corporaion. Liability is oten just another word for debt. Liability for a business includes the responsibility to pay all normal debts and to pay : because of a court order, because of a law, for performance under a contract, for damages to a person or property. A partnership is a legal form of business with two or more paries. Two types of partnerships are general partnerships and limited partnerships.