ADMS 3920 Chapter Notes - Chapter 10: Oral Contract, Exclusive Dealing, Canadian Intellectual Property Office
Document Summary
Forms of organization: the soles proprietorship option - is a business owned by one person. The business owner receives all the profits, but is also subject to unlimited liability. The death of an owner terminates the legal existence of a business. Partners share the profits and are also subject to unlimited liability. Partnership should be formed only it if is the best option when all matters are considered. The following questions should be asked before creating a partnership: What is our business concept? (roles of the partners and how business will be done?) How are we going to structure ownership? (share ownership between the partners) How do our lifestyles differ? (family, single?) Partnership agreement a document that states explicitly the rights and duties of partners. Agency power the ability of any one partner to legally bind the other partners. Death, incapacity, or withdrawal of any one partner ends a partnership and necessitates liquidation or reorganization of the business.