BUS-294 Lecture Notes - Lecture 21: Sole Proprietorship, General Partnership, Legal Personality
9 Oct 2020
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Business can be defined as an enterprise that carries on an organized economic activity for profit. One owner, owns 100% of business, must be a human being. Business operates under the name of the proprietor (owner) or under a trade name. Must be registered with the province in which you operate (online form) pay a yearly fee. Proprietor is personally liable for all debt of the business high risk. Termination: the business of the sole proprietor will terminate with the death of the owner or when the owner decides to stop operating. There is no business that can be sold as a going concern, only the assets can be sold. Fyi: few businesses operate as sole proprietorships due to the high risk of personal liability and due to the tax advantages available through incorporation. Partnership agreement: a private contract signed by all of the partners which specifies the roles, contributions, function and share of profits of each partner.
