MGTA01H3 Chapter Notes - Chapter 4: Canada Business Corporations Act, Takeover, Initial Public Offering

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19 Oct 2012
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MGTA01H3 Full Course Notes
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MGTA01H3 Full Course Notes
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Four different types of legal ownership businesses must choose from: A business owned and operated by one person. The business is considered an extension of yourself under a sole proprietorship (not a separate legal entity). Usually don"t have to register name (use your own name with no additions) Low startup costs -> appealing to independent people. Tax benefits -> most businesses have losses in their early stages, their loses can be deducted from their personal income sources other than the business (same legal entity) Unlimited liability personal liability for all debts of the business. Lack of continuity legally dissolves when the owner dies. Depends on resources of one person, whose managerial and financial limitations may constrain the business. A form of organization established when two or more person"s agree to combine their financial, managerial and technical abilities for the purpose of operating a business for profit.