Management and Organizational Studies 2275A/B Chapter Notes - Chapter 14: Limited Liability Partnership, Sole Proprietorship, Profit Sharing

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

The sole proprietorship: the oldest form of business organization and the one most often used by small business. They need to include in their personal tax returns: transferability, the partnership does not provide for the ready transfer of interest from one owner to another, partnership act, when a partnership exists. The sharing of profits is one factor to consider in determining whether a partnership exists. If a person conducts themselves as if they were partners even if they did not expressly intend on being a partnership, for example, by sharing profits, this is seen as a partnership in the eyes of the law. He has all the rights and liabilities of a partner: the partnership act also sets out a number of circumstances that point toward there being a partnership but not conclusively so. If no written agreement, default rules from partnership.