MGSC30H3 Chapter 16: Chapter 16 Notes
Document Summary
Chapter 16: law of sole proprietorship & partnership. Sole proprietorship owns all of the assets, is entitled to all of the profits, & responsible for all of the debts disadvantage: limited ability to raise capital. Partnership a relationship that subsists between 2 or more persons carrying on a business in common with a view to profit does not include social clubs, charitable organizations. Partnership a partnership may be established from pov of 3rd parties by estoppel. Must repudiate the agreement to enter before/after turning to legal age. Fails to repudiate: liable to the debts incurred previously. Repudiate: not liable for the debts to partnership but not entitled to profits unless debts are paid off. Liability of a partnership for the acts of a partner in a partnership, every partner is the agent of the firm partners create joint and several liability: ie) one partner"s actions/statements create liability for the that partner.
