Management and Organizational Studies 2275A/B Lecture Notes - Lecture 6: Sole Proprietorship, Limited Partnership, Law Of Agency

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Any business must go under these 3 types of businesses. Even franchises go under one of these three business organizations (contractual agreements) Within a sole proprietorship, the owner and the business is the same. Doesn"t have a legal separation b/t the people who own and operate them. The partners are responsible fro the debt of the partnership. All the partners were liable for any risk or debt the business has. Has a separate legal entity from those who own and operate them. Therefore it can has its own debt and assets. As far as the law is concerned, a corporation is the exact same as a real person. A relationship that one party represents another party in the formation of legal relations. Results in a legally binding agreement b/t the principal (person who has permitted another to act on her behalf) and the 3rd party.