ECON101 Lecture Notes - Lecture 16: Double Taxation, Retained Earnings, Economic Efficiency

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Emanuel Carvalho

Document Summary

A proprietorship is characterized by a single owner sonly responsible for the operation of the business, or the management of the business. Nimble, you can make your own decisions, no profit sharing. Unlimited liability they are fully liable for all debts occurred by the business, higher risk, the size of the business is limited to the money capital that one person can raise. Characterized by 2 or more owners who together share the responsibility of operating or managing the business. More money with more than one owner this positively influences the potential size of the business. Team of people with different expertise e. g. engineer, economist, lawyer. Each owner is liable for all debts occurred by the business. Potential for conflict, such as disagreement between owners. Owned by share holders, the shareholders elect a board of directors one of the main responsibilities of the board of directors is to hirer the management and oversee the management of the company.