BUSAD 120 Lecture Notes - Lecture 24: Sole Proprietorship, General Partnership, Legal Personality
Document Summary
Business can be defined as an enterprise that carries on an organized economic activity for profit. Three forms of business ownership: sole proprietorship, partnership, corporation. Has only one owner, they own 100% of business and must be a human being. Business operated under the name of the proprietor (owner) or under a trade name. Must register with the province in which you operate (online form, similar for all forms of business ownership) and pay yearly fee to maintain ownership. Proprietor personally liable for all debts of 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 proprietorship due to the high risk of personal liability and due to the tax advantages available through incorporation.
