COB 218 Chapter Notes - Chapter 11: Sole Proprietorship, Operating Agreement
28 Nov 2016
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Sole proprietorship: the simplest form of business, the owner is the business reports business income on his/ her personal income tax return & is legally responsible for all debts & obligations incurred by the business. Franchise: any arrangement in which the owner of a trademark, a tradename, or a copyright licenses others to use the trademark, tradename, or copyright in the selling of goods or services. Types of franchises: distributorship: auto dealership, chain style: mcdonalds, manufacturing: coca cola company. Partnership: arises from an agreement, express or implied, between two or more persons to carry on a business for profit. Three essential elements to a partnership: sharing of profits & losses, a joint ownership of the business, an equal right in the management of the business. Articles of partnership: a writte(cid:374) agree(cid:373)e(cid:374)t that sets the part(cid:374)ers" rights & obligatio(cid:374)s to the partnership.
