LAW 122 Lecture Notes - Lecture 7: Objective Test, Golf Cart, Kijiji
2 Apr 2017
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Document Summary
For sole proprietorship, and partnership, owners have full liability for the business and can affect your personal life. However in a corporation, there is limited liability (last type of business organizations) Is a legal person, with a separate legal existence from its directors, shareholders, and officers. In the name it can have ltd. or corp. after its name. (they are seen as a separate human being, and it itself can sue and be sued) Here you cannot just start the business, you need to fill documents with the government to start the corporation. Here the corporation has shareholders, these shareholders elect directors, than directors appoint officers (which include president, secretary, treasurer, vp). the officers are then the ones who run the corporation. There is also a 3rd party - auditors which is hired by shareholders to watch over the officers and even the directors to make sure they are doing the right thing.
