BUSI 3705U Study Guide - Final Guide: Limited Liability Partnership, Sole Proprietorship, Consensus Decision-Making
Document Summary
Legal consequences of a sole proprietorship = that it directly impacts individual rights and liabiliies. Priority must business owners place on choice of form of ownership for their business = it is a criical decision. As a sole proprietorship, does not have the capacity to borrow capital in its own right. No partners and no board of directors = its limited failure expectancy. Risk of sole proprietor = adverse efects of illness or incapacity. Contrast marginal personal tax rate versus corporate tax rate when atemping to achieve the proit moive. To avoid ines and penalies, business name must be registered. Zoning bylaws, tax laws and ire regulaions = laws of general applicaion. Sole proprietorship and partnership similar = neither is a legal enity with capacity to contract. Most likely sources of regulaion a partnership must be aware of as it conducts business = agency, contract and partnership law.
