MGMT 1P93 Study Guide - Midterm Guide: Sole Proprietorship, Canadian Business, Fits
3 Nov 2018
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Chapter 5: business formation: choosing the form that fits. The owners of a corp. have limited liability- meaning that they are not personally responsible for the debts and obligations for their company. More than 32% of all canadian businesses are sp 1,107,982 of them. Ease of formation: paperwork and costs involved in forming a sp are minimal, no special forms and fees. Retention of control: owner has the entire control. Pride of ownership: feeling of pride and the personal satisfaction they gain from. Limited financial resources: raising money to finance growth can be tough for sps. Banks and other financial institutions are reluctant to lend money because its owned by one person. Likewise, suppliers may be unwilling to provide supplies on credit. Leaving sps dependent on own wealth plus the money their firms generate. owning their own business. Retention of profits: all profits go to you minus your personal taxes.
