BUSI 2601 Lecture Notes - Lecture 3: Natural Person, Unanimous Consent, Canadian Business
23 Jan 2018
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Why enter a partnership: more capital, help to manage business, more people to absorb risk, the partnership law developed in english common law. In 1890 is when the partnership was created. Partners relationship to law: contracts, torts, liability. Problems with the partnership act: all partners are not created equal, every partner cannot run the business, pa is rarely amended i. e. outdated, has high start-up costs. Fiduciary duty: must act in good faith, never put their interest ahead of the partnership or in other words act in the best interest of the partnership http://www. e-laws. gov. on. ca/html/statutes/english/elaws_statutes_90p05_e. htm# Sp - owner is the person who controls the business organization. Partnerships - two or more persons carrying on a business in common with a view to a profit. Why do you want a separate legal identity? to manage risk limit liability raise money franchise taxes a corporation has a less chance of being audited by the government.
