MGTA01H3 Chapter Notes - Chapter 4: Sole Proprietorship, General Partnership, Initial Public Offering
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MGTA01H3 Full Course Notes
Four options of legal ownership of business: the sole proprietorship, the. Sole proprietorship: a business owned and operated by one person. Adv: simplicity, freedom, easy to form, low start up costs, etc. Disadv: unlimited liability, lack of continuity, (legally dissolves when the partnership, the corporation, and the cooperative. owner dies), depends on resources *financial and managerial skills* of one person, hard to borrow money. Partnership: formed when two or more persons operate a business for pro t. The agreements usually state how disagreements will be resolved, who invested how much money, who reports to who, how much pro t is shared between partners, how partnership will be dissolved, how leftover assets be distributed among the partners. . Two types: general partnership- all partners share the pro ts of business and have say managing the business, and are liable for the debts and other liabilities of the partnership business.