LAW 122 Lecture 5: LAW122 Week 5,6 Ch21
1 Dec 2016
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Sole proprietorships: exists when a person carries on business on their own, without adopting any other form of business organization. You agree to (cid:272)ut (cid:455)ou (cid:374)eigh(cid:271)our"s grass for (cid:373)o(cid:374)e(cid:455) ea(cid:272)h (cid:449)eek, (cid:455)ou are (cid:272)arr(cid:455)i(cid:374)g o(cid:374) business as a sole proprietorship. Could enter into a contract to employ someone else to cut your neighbours grass- but you remain the sole owner of the business and the only person responsible for its obligations. Sole proprietorship cannot be an employee of the business because you cannot contract with yourself. Gets all the benefits and bears all the burdens of the business. No separation between business and proprietor (owner: proprietor entitled to all income, proprietor liable for all obligations, proprietor"s assets available for business debts, business income (loss) on personal income, proprietor cannot be employee of business. Several important implications in terms of the relationships between the business and its other stakeholders :
