MGTA02H3 Chapter Notes - Chapter 4: Limited Partnership, Canada Business Corporations Act, Horizontal Integration
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MGTA02H3 Full Course Notes
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Chapter 4 understanding legal forms of business organization. Sole proprietorship: business owned and operated by one person. Majority of businesses in canada are sole proprietorships, this form of ownership accounts for only a small proportion of total business revenues. Freedom they are to answer to no one but themselves. Easy to form if you operate the business under your own name with no additions, you don"t even need to register your business name to start operating as a sole proprietor. Tax benefits since the business and the proprietor are legally one and the same, these losses can be deducted from income the proprietor earns from personal sources other than the business. Unlimited liability: personal liability for all debts of the business. A sole proprietor is personally liable for all debts and legal liabilities incurred by the business. Lack of continuity a sole proprietorship legally dissolves when the owner dies.
