Management and Organizational Studies 2275A/B Lecture Notes - Lecture 14: Limited Liability Partnership, Sole Proprietorship, Law Of Agency

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

Document Summary

Who shares the profit and other assets. Who makes and is accountable for managerial decisions. Financial liability: business obligations are personal obligations (unlimited liability, personal assets may be taken away in the case of bankruptcy. Profit sharing sole proprietor keeps all the profit. Decision making sole proprietor makes all the decisions: limited life span for the business if owner dies, business is terminated. Sources of capital limited access to capital. Taxation taxed on owner"s personal income tax. Transferability cannot be transferred or sold to another due to no legal status: assets are transferable. Regulations business is simple and inexpensive: easy to start a business under sole proprietorship, subject to the same general legislation as any other business. A business carried by two or more persons. Financial liability: unlimited liability, not legally capable of borrowing money on its own, joint liability liability shared by two or more parties where each is personally liable for the full amount of the obligation.