ECON 2720 Lecture Notes - Lecture 3: Stock Trader, Sole Proprietorship, Legal Personality
18 Jan 2017
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Document Summary
Structure well suited to certain types of business activities. No such thing as the "best" business structure. A partnership is an unincorporated association of two or more individuals to carry on a business for profit. Many small businesses, including retail, service and professional practitioners, are organized as partnerships. New partnership agreement must then be made even if other partners want to stay in business. Every partner is involved in running the business (unless a silent partnership, one step closer to a corporation) All partners are presumed to be involved in management and able to make binding decisions on behalf of the partnership. If each of the partners can enter into binding contacts on behalf of the business, it can result in poor business decisions for the company. One of the reasons why partnerships can be smaller. Each one of the partners is fully liable of the debts incurred by the business business.
