LAW 122 Study Guide - Midterm Guide: Bes

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

Week 7 chapter 21 basic forms of business organizations. The law determines the extent to which individuals entrepreneurs benefit when their businesses prosper and the extent to which they are responsible for loses when they do not. The sole proprietorship is the simplest form of business organization. Sole proprietorship: comes into existence when a person starts to carry on business on their own, without adopting any other form of business organization, such as a corporation. As sole proprietor, you could enter into a contract to employ someone else to cut your neighbor"s grass, but you remain the sole owner of the business and the only person responsible for its obligations. Both legally and practically, there is no separation between the sole proprietorship business organization and the individual who is the sole proprietor. The sole proprietor gets all the benefits and bears all the burdens of the business o o o.