MGTA01H3 Chapter Notes - Chapter 4: Takeover, Chief Executive Officer, Initial Public Offering
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MGTA01H3 Full Course Notes
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Document Summary
Sole proprietorship: business owned and operated by one person, considered an extension of self (no separate legal entity, makes up majority of businesses in canada, but small proportion of total business revenue don"t need to register. Advantages: freedom-don"t need to answer to anyone but yourself, easy to form, simplicity of a legal setup, tax benefits (e. g. if suffer losses in early stages, can deduct from income) Disadvantages: unlimited liability, legally dissolves when owner dies (lack of continuity, harder to borrow money personal liability for all debts of the business. Advantages: easier to borrow funds, simple to organize and few legal requirements, all have agreement, whether written, unwritten or unspoken, partners are taxed as individuals. Ft employee of the company members of board of directors that are not employees of the corporation responsible for firm"s overall performance e. g. university officials: chief executive officer (ceo) Canada business corporations act need this if operating in more than one province.
