16 views4 pages
16 Feb 2011
School
Course
Professor
Ch.4
Sole Proprietorship a business owned and operated by one person
Represents most businesses in Canada
Disadvantages unlimited liability personal liability for all debts of the
business
Proprietorship legally dissolves when owner dies
Hard to borrow money to start up or expand
Advantages freedom
Easy to form/start
No corporate taxes
Losses can be deducted from income of proprietor
The Partnership a form of organization established when two or more persons agree to
combine their financial, managerial, and technical abilities for the purpose of operating a
business for profit
Working together avoids corporation tax
General partnerships a type of partnership in which all partners are
jointly liable for the obligations of the business
Limited partnerships a type of partnership with at least one general
partner (who has unlimited liability) and one or more limited partners. The limited
partners cannot participate in the day to day management of the business or they
risk the loss of their limited liability status
General partners partners who are actively involved in managing the firm
and have unlimited liability
Limited partners partners who dont participate actively in the business
and whose liability is limited to the amount they invested in the partnership
Advantages grow quickly
Easier to borrow money
www.notesolution.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Sole proprietorship a business owned and operated by one person.  disadvantages unlimited liability personal liability for all debts of the business.  hard to borrow money to start up or expand. Losses can be deducted from income of proprietor. The partnership a form of organization established when two or more persons agree to combine their financial, managerial, and technical abilities for the purpose of operating a business for profit. General partnerships a type of partnership in which all partners are jointly liable for the obligations of the business. Limited partnerships a type of partnership with at least one general partner (who has unlimited liability) and one or more limited partners. The limited partners cannot participate in the day to day management of the business or they risk the loss of their limited liability status. General partners partners who are actively involved in managing the firm and have unlimited liability.

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
Booster Classes
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
Booster Classes