Management and Organizational Studies 2310A/B Chapter Notes - Chapter 1: General Partnership, Sole Proprietorship, Corporate Security

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Stacey Hann

Document Summary

Sole proprietorship: a business owned by one individual. Simplest and least regulated: more proprietorships then any other type of business, unlimited liability for business debts. You keep al the profits: creditors can turn to personal assets for payment, no distinction between business and personal income. Life is limited to the life of the owner: all business income is taxed as personal income, amount of equity that can be raised is limited by the owner"s personal wealth, difficult to transfer ownership. To transfer a new partnership must be formed seriously limited by an inability to raise cash. Corporation: a business created as a distinct legal entity owned by one or more individuals or entities. Shareholders elect a bod which selects the managers: ownership can be easily transferred and life of the corporation isn"t limited, must pay taxes as a corporation and dividends are taxed again as income.