MGTA01H3 Chapter Notes - Chapter 4: Sole Proprietorship, Initial Public Offering, General Partnership
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MGTA01H3 Full Course Notes
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Document Summary
Chapter 4 understanding legal forms of business organizations. A productive company: smartest people, know how to mobilize resources (productive) 3 forms of organization: sole proprietorship, partnership, corporation easiest way to start a business. Eg. babysitting, dog walk, shoveling snow keeps all profits responsible for all debts operated by 1 person easy to set up no regulatory requirements no mandatory accounting needs (don"t need to tell anyone) cheap to set up. ~ if registered (want copyright on your business name) Disadvantages limits to owner"s skills lack of continuity (if owner dies) limits to owner"s resources hard to get finance (bank loans) finance with own money personal and limited liability (can be sued for as much as they want) Operated by 2 or more people (acting together) More contacts (potential customers) lack of legal standing means they are taxed as individuals. Not binding on others: how much 11651$ each member contributed, what each partner must do, how profits are divided.
