LAW 122 Lecture Notes - Lecture 4: Search Report, Numbered Company, Canada Business Corporations Act
11 Sep 2017
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Types of business organizations: sole proprietorships (ie. tutoring someone, general partnerships. Liability and benefits of entrepreneurs and other stakeholders differ depending on type used. Ie. software development: selling t-shirts on the street. No separation between business and proprietor (owner): proprietor entitled to all income, proprietor liable for all obligations, proprietor"s assets a(cid:448)aila(cid:271)le for (cid:271)usi(cid:374)ess de(cid:271)ts, business income (loss) on personal income, proprietor cannot be employee of business. Disadvantages: unlimited personal liability, money raised only by personal borrowing, both problems grow as business grows. Laws generally applicable to businesses apply to sole proprietors, such as: provincial registration for business name, only if name other than personal name business license may be required requirements vary with type of business. Three main types of partnerships: part(cid:374)ership (cid:894)so(cid:373)eti(cid:373)es (cid:272)alled (cid:862)ge(cid:374)eral part(cid:374)ership(cid:863)(cid:895) limited liability part(cid:374)ership (cid:894)or (cid:862)llp(cid:863)(cid:895) limited partnership. A partnership exists when two or more people carry on business together with a view to a profit.
