MGM101H5 Chapter Notes - Chapter 4: Sole Proprietorship, General Partnership, Privately Held Company
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MGM101H5 Full Course Notes
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Document Summary
Three major forms of business ownership: sole proprietorship, partnership, corporation. Sole proprietorship: business owned and operated by one person, without forming corp: business and owner are one entity. Partnership: legal form of business with two or more parties. Corporation: legal entity with authority to act and have liability separate from owners: have largest share of business revenue. Liability: includes responsibility to pay all normal debts, to pay because of court order or law, for performance under contract, or because damages to person/property in accident. Ease of starting and ending business: only need equipment and marketing, maybe permit. Being your own boss: mistakes are your own, victories are your own. Pride of ownership: deserve all the credit for risks and providing needed products. Retention of company profit: can earn as much as possible without sharing (except tax) No special taxes: taxes are only personal income and can claim business losses against other earned income (decrease personal taxes)
