MGM101H5 Chapter Notes - Chapter 4: Sole Proprietorship, Limited Liability Partnership, General Partnership
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MGM101H5 Full Course Notes
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Document Summary
Consider issues of cost, risk, control, legal, administration, and. Liability - is often just another word for debt, but it also has a wider and important meaning, as you will see in the following pages. Liability for a business includes the responsibility to pay all normal debts and to pay because of a court order because of a law. Corporation- a legal entity with authority to act and have liability separate from its owners. Private- not traded on any stock exchange- limited to 50 or fewer stockholders. Public- shares are traded on one or more stock exchange. Non-profit- performs public service, has special tax considerations to encourage formation. Limited liability - only limited loss of what owners invest. More money for investment - sell stocks for money. Size - more money from investors, more money to spend on. Perpetual life - death of owners don"t stop the company. Ease of ownership change - sell all stocks of owner if wanted.
