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

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

Document Summary

Choosing how to own a business is a critical decision because it determines in large part who: Shares in business profits and other assets: makes and is accountable for management decisions. The sole proprietorship is the oldest form of business organization and the one most often used by small businesses and is a unicorporated business organization that has only one owner. It is a particularly popular choice for the home-based enterprise. The liability here is joint liability which is liability shared by two or more parties where each is personally liable for the full amount of the obligation. The legislation in place in the common law provinces provides mandatory rules with respect to: when a partnership exists, what the relationship of partners is to outsiders. These acts have optional rules (ie; the rules are subject to an agreement to the contrary) with respect to: the relationship of partners to one another, how and why a partnership ends.