MGM101H5 Chapter Notes - Chapter 4: Sole Proprietorship, Limited Partnership, General Partnership

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Parveen Gill

Document Summary

Sole proprietorship: owned and operated by one person, no corporation. Business and the owner are a single entity. (24% of all canadian businesses) Partnership: a legal form of business w/ two or more parties. Corporation: a legal entity w/ authority to act and have liability separate from its owners. Liability: debt; 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. Ease of starting and ending the business, no one to consult/disagree with. No special taxes (taxed as personal income only), claim any business losses. Pride of ownership take all the credit which would decrease the personal taxes they pay. Less regulation by governments, administration is less than that of a corporation. Unlimited liability risk of personal losses.