Textbook Notes (363,063)
Canada (158,170)
MGTA01H3 (583)
Chapter 4

Chapter 4

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Introduction to Management Chapter 4 Canada is a free market economy; therefore entrepreneurs need no permission, pay no fees, and need not to fill out any special forms to start a business. They just simply begin. 3 Main forms of Organization In Canada 3 common forms: Sole Proprietorship Partnership Corporation Sole Proprietorship Easiest way to form a business Most Common form of ownership Example: Local math tutor, kid who shovels drive ways, private swimming teacher. In a sole proprietorship the business is owned and operated by 1 person. Sole proprietor: -makes all decisions -keeps all profits -responsible for all debts Advantages: Easy to setup, with no regulatory requirements, no mandatory accounting needs. Cheap to set up ($60 - $70 if registered $0 if not), Does not need to be registered, and management and ownership clear. Disadvantages: limits to owners skills, limits to owners resources, hard to get finance (bank loans). Personal Liability: you are personally responsible to pay any bills, settle any lawsuits, and pick up all the pieces. Unlimited Liability: your personal responsibility is unlimited; you can be unlimitedly sued if anything goes wrong. No limit to the value of the job. No limit to the value of the assets used on the job. www.notesolution.com
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