ACTG 2P40 Lecture Notes - Sole Proprietorship, Share Capital, Legal Personality
Document Summary
Business organization (chap 24-25: know three kinds and liability for each, know partnership defn. And types of partnerships: partners fiduciary duties, corporation, differences, fiduciary duties or directors/shareholders, separate corporate existence, piercing the corporate veil-when, operations of corporation, share characteristics. Pool knowledge and skills and their physical and financial resources. Disagreements may lead to stalemate, dishonesty or incompetence of one member may lead to losses suffered by the others. The legal nature of partnership: legal personality. A partnership is treated as a separate entity with its own assets, liabilities and financial statements: partnership property. Partnership creditors have first call against partnership assets before the personal creditors of an individual partner: the creation of a partnership. Partnership agreement: an agreement between persons to create a partnership and setting out the terms of the relationship: the liability of a partner. Partners are bound to renders true accounts and full information of.
