LAW 122 Lecture Notes - Lecture 6: Numbered Company, Canada Business Corporations Act, Sole Proprietorship
9 Feb 2016
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Document Summary
Liabilities and benefits for entrepreneurs and other stakeholders differ depending on the type used. Sole proprietorship: arises once a single person begins to conduct business, no separation between business and proprietor(owner) Proprietor cannot be employee of business: advantages: Money raised only by personal borrowing (debt) Both problems grow as business grows: suitable for small business, legal requirements. Any laws generally applicable to businesses apply to sole proprietors. Provincial registration for business name (only if name other than. Business license may be required (requirements vary with personal name) business) General partnerships: 2 or more people carry on business with a view to profit, partnership creation automatic when relationship begins, no formalities required, partnership characteristics: Income to partnership is personal income to partners. Ontario partnership act provides default rules, which can be supplemented or modified by partnership agreement. Each partner can commit the partnership to obligations: indications of partnership: Sharing profits or losses (not just revenues)
