MGTA05H3 Chapter Notes - Chapter 2: Legal Personality, Sole Proprietorship, Lemonade Stand
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MGTA05H3 Full Course Notes
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Document Summary
This is a business owned and operated by one person (considered to be an extensive of yourself not a separate legal entity) They may be small but can be large as steel mill or small as a lemonade stand. Majority of the business in canada are sole proprietorship. This type of business makes a small portion from the business revenue. No formalities or legal requirements or cost are required to start the business. Tax losses can be offset against other income. There is no one ordering them what to do. Easy to form, you don"t need to register to start your business. Losses can be deduction from the income. Unlimited liability, one person is responsible for all the debts and legal liabilities incurred by the business. If they fail to pay the bills that money will come from the owner"s pocket. Lack of continuity, the business will end if the owner dies.
