MGM101H5 Chapter Notes - Chapter 4: Sole Proprietorship, Limited Liability, General Partnership
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MGM101H5 Full Course Notes
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Document Summary
A sole proprietorship (easiest to set up) is one person owning and operating a business, without forming a corporation. Partnership: a legal form of business with two or more parties. The business can be a partnership of individuals, corporations, trusts, other partnerships, or a combination of these. Corporation: a legal entity with authority to act and have liability separate from its owners. Liability: for a business, it includes the responsibility to pay all normal debts and to pay because of a court order or law, for performance under a contract or payment of damages. Advantages of a sole proprietorship: ease of starting and ending the business, being your own boss, pride of ownership, retention of company profit, no special taxes, less regulation. Disadvantages of a sole proprietorship (often it is difficult to save enough money to start a business and keep it going.
