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Canada (162,164)
MGTA01H3 (583)
Chapter 4

MGTA03 Chapter 4.docx

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Management (MGT)
Chris Bovaird

MGTA03Summer2011 Chapter 4 Understanding Legal Forms of Business OrganizationForms of Business OwnershipThe Sole ProprietorshipSole Proprietorship a business owned and operated by one personIt is the easiest way to form a business and most common form of ownership in CanadaSole proprietor makes all decisions keeps all profits responsible for all debtsAdvantages easy to set upthere are no regulatory requirements no mandatory accounting needs cheap to set up6070 to register but does not need to be registered Disadvantages limited to owners skills limited to owners resources hard to get financed bank loans personal liability and unlimited liabilityowner is fully responsible for all the debt the business has must pay out of own pocket for everythingyour financial responsibility is unlimited meaning you could lose anything trying to pay the debt off such as house car life savingsThe PartnershipPartnership a form of organization established when 2 or more people agree to combine their financial managerial and technical abilities for the purpose of operating a business for profitGeneral partnerships a type of partnership in which all partners are jointly liable for the obligations of the business Limited partnership a type of partnership with at least one general partner and one or more limite
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