Management and Organizational Studies 2275A/B Chapter Notes - Chapter 14: Sole Proprietorship, Management System, General Partnership

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

Document Summary

Choosing how to own a business is a critical decision because it determines who; Shares in business profits and other assets. Makes and is accountable for management decisions. Sole proprietorship : an unincorporated business organization that has only one owner. An unincorporated business organization that has only one owner. Oldest form of business organization and the one most often used by small businesses. It represents simplest form of business organization bc there is no legislation pertaining to sole proprietorship. Any obligation of the business is sole proprietor"s personal obligation. The bank loan = if luke decides (sole proprietor) to borrow money from the bank, it is he who promises to repay the loan, not his business. If business falters and cannot repay the loan, bank will take legal steps to recover as much of the debt as possible. All of his business and personal assets are subject to the debts of he business.