MCS 3040 Chapter Notes - Chapter 14: Limited Liability Partnership, Sole Proprietorship, Limited Liability

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Choosing how to own a business is a critical decision because it determines in large part who : is nancially liable for the business, shares in business pro ts and other assets, makes and is accountable for management decisions. Sole proprietorship: an unincorporated business organization that has only one owner: popular choice for the homie-based enterprise, simplest form of business organization because there is no legislation pertaining to sole proprietorship. Financial liability: any obligation of the business is like"s personal obligation, unlimited liability, personal and business assets may be seized to pay outstanding business debts. Cons: unlimited personal liability, carries risk of business failing and losing both business and personal assets, working alone, limited access to capital, limited life span. Tuesday, december 6, 2016: owner"s death terminates business, proprietorship can"t be transferred, tax disadvantages, if you are making more money, taxes become more expensive.