Textbook Notes (368,242)
Canada (161,733)
Management (848)
MGM101H5 (376)
Chapter 4

MGM Chapter 4.docx

4 Pages
Unlock Document

Dave Swanston

Types of businesses Type of Definition Advantages Disadvantages business Sole a business that  Easy starting and ending  Unlimited liability proprietorship is owned and  Being your own boss  Limited financial resources 23.9% run by one  Pride of ownership  Management difficulties person (local  Keep company profit  Time commitment businesses)  No special tax  Few fringe benefits  Less gov’t regulations  Limited growth  Limited lifespan  High tax if income > 400000 Partnership a legal form of  More financial resources  Unlimited liability 4.4% business with o Pool capital  Division of profits two or more  Shared management, skills and  Disagreements among parties (legal knowledge partners firms) o Each partner has something  Difficult to terminate new to offer  Higher taxes if profitable General  Longer survival o If income is high, Partner: an  Shared risk they may pay owner  No special tax higher taxes than if (partner) who o Personal income, normal they were has unlimited income tax incorporated liability and  Less gov’t regulations manages the firm Limited Partner: An owner (partner) who invests money into the firm, doesn’t manage and limited liability (only what they invest) Corporation a legal entity  Limited liability  Extensive paper work 69.1% with authority  More money for investment  Double taxation to act and have o Selling shares  Two tax returns liability  Size o Corporate tax separate from o Large scope of things return its owners  Perpetual life o Individual tax (Walmart) o Death doesn’t terminate return Public corps: business  Size has the right to  Ease of ownership change o Slow against issue shares to  Ease of drawing talented employees market changes the public to be  Separation of ownership from o Inflexible listed on the  Difficulty of termination management stock exchange o Owners/stockholders don’t  Possible conflicts with Private corps: control daily operations stockholders and board of not allowed to directors issue shares,  High initial cost limited to 50 or less shareholders  Other types of corporations o Professional corps
More Less

Related notes for MGM101H5

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.