LAW 122 Chapter Notes - Chapter 21: Fiduciary, Professional Negligence In English Law, Going Concern
LAW - Chapter 6 – Business Associations
Fringe Formats
State enterprises (SOE)
Crown corporations
Airport authorities
Agencies
Special Corporations – banks, insurance, trusts
Sole Proprietorships
Main Problems
oPersonal Liability for contracts and torts
oRaising Funds
oIncome Tax
Statutory Problems
oRegister name or consequences
oLicensing still required
Business licence –government permission to operate a certain kind of
business
Arises once person begins to conducts business
No separation between business and proprietor
oProprietor entitled to all income, liable for all obligations, assets available for
business debts, business loss on personal income, proprietor cannot be
employee of business
Advantages: simple to start, simple to administer, possible tax advantages
Best for small businesses
Unlimited person liability – of a sole proprietor means that third parties may take all
the sole proprietor’s personal assets to satisfy the business’s organization
Partnerships
General Partnerships
oMust have two or more partners, carrying on a business, with a view to a profit
oNo formal requirements for creating a partnership
oEach partner is liable for the contracts and torts of the partnership irrespective if
they (1) signed the contract or (2) committed the injury
oIf you get profit you are considered a partner (if salary maybe not)
oFactors indicating partnerships
Sharing profits, jointly owning property, involvement in business. Joint
authority for contracts and bank accounts, equal access to business info,
engaging in ongoing activity, consider the risks of unintended partnership
oOntario Partnership Act
oQualifying the scope of liability – in the ordinary course of the business of the
partnership
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Main problems: personal liability for contracts and torts, raising funds, income tax. Statutory problems: register name or consequences, licensing still required. Business licence government permission to operate a certain kind of business. Arises once person begins to conducts business. No separation between business and proprietor: proprietor entitled to all income, liable for all obligations, assets available for business debts, business loss on personal income, proprietor cannot be employee of business. Advantages: simple to start, simple to administer, possible tax advantages. Unlimited person liability of a sole proprietor means that third parties may take all the sole proprietor"s personal assets to satisfy the business"s organization. Sharing profits, jointly owning property, involvement in business. Joint venture: a collection off partners of corporations that gather together for one project for one project and forma partnership. A corporation is a legal person, with a separate legal existence from its directors, shareholders and officers.
