MCS 3040 Chapter 14: Chapter 14 Business Forms and Arrangements

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

Document Summary

An unincorporated business organization that only has one owner. Starts and can discontinue business at any time. Speed and independence: no partners or board of directors, decisions made independently and swiftly. Profit motive: any after-tax profit or accrued assets go entirely to sole proprietor. Lower costs: the fees for provincial and local licenses are small, generally no related legal fees. Working alone: the sole proprietor is responsible for all aspects of the business operation. Difficult to retain top talent as opportunities are limited. Limited access to capital: capital available is limited to assets of the proprietor and extent of credit. Limited life span: the owner"s death terminates the business. A business carried on by two or more persons with the intention of making a profit. Greater access to capital: includes assets and credit of both partners. Profit motive: any after-tax profit or accrued assets are split according to partnership interest.