MGMT 3230 Lecture 4: Business Law-lecture

• School: Mount Royal University
• Department: Management
• Course: MGMT 3230
• Professor: stephanialuciuk

Document Summary

Sole prop. - business carried by one person. (has no separate existence) person is fully liable for everything. Partnership- business carried on by two or more people with the intention of making a profit. *external legal test fo(cid:396)(cid:373)al i(cid:374)te(cid:374)tio(cid:374) to fo(cid:396)(cid:373) a pa(cid:396)t(cid:374)e(cid:396)ship is (cid:374)ot (cid:396)e(cid:395)ui(cid:396)ed. Corporation- a business that exists by virtue of statute. New person. (owned by shareholders, managed by directors, elected by shareholders) General: two or more people meet the criteria. All partners engage in a business activity. (same liability) Limited: general partner and also have one or more limited partner. (limited partner does not participate in business activity). Limited liability: pa(cid:396)t(cid:374)e(cid:396)s a(cid:396)e (cid:374)ot lia(cid:271)le fo(cid:396) othe(cid:396) pa(cid:396)t(cid:374)e(cid:396)"s (cid:374)eglige(cid:374)(cid:272)e. Partnership act: lays out how decisions are made, how profit is shared, what happens when a partner dies. Nothing more than an agree(cid:373)e(cid:374)t (cid:271)et(cid:449)ee(cid:374) t(cid:449)o pa(cid:396)ties, it"s enforceable in a court.