MGTA01H3 Chapter 4: BUSINESS CUSTOM 2/E VOL. 1 Chapter 4 Readings (very detailed and helpful)

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Chapter 4: understanding legal forms of business organization. A business owned and operated by one person. Freedom since there is no sharing of ownership. Tax benefits (tax cuts from income made from personal sources rather than the business) Unlimited liability: personal liability for all debts of the business: if biz fails to generate enough cash, bill must be paid out of owner"s pocket. Lack of continuity: a sole proprietorship legally dissolves when owner dies. Biz depends on the resources of one person who managerial and financial limitations may constrain biz: hard to borrow money to start-up or expand. A form of organization established when two or more persons agree to combine their financial, managerial, and technical abilities for the purpose of operation a business for profit. The limited partners cannot participate in the day-to-day management of the business or they risk loss of their limited liability status www. notesolution. com.