MGSC30H3 Chapter Notes -Sole Proprietorship, Limited Partnership, General Partnership
Document Summary
Who bears the risk depends upon the type of organization that is carrying on the business: sole proprietorship, general partnership. The law determines the extent to which individual entrepreneurs benefit when their businesses prosper and the extent to which they are responsible for losses when they do not. It also provides a structure for the operation of businesses, focusing on the relationship that owners and managers have with the business and with each other. It establishes the rights and obligations of owners to manage the business themselves and to monitor and control others who manage on their behalf. Business organizations law addresses the risks that business owners face as a result of actions by managers. The stakeholders in business organizations: government, financial creditors, trade creditors, managers, owners, customers, employees, public, commercial activity. Advantage: simple and easy to set up, easy to dissolve.
