COMM-1007EL Chapter Notes - Chapter 2: Asset, Accounts Payable, Cash Flow

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-1007EL
• Professor: Laughren Tannys

Document Summary

A sole proprietorship is a business owned and usually operated by a single individual. The p(cid:396)op(cid:396)ieto(cid:396) assu(cid:373)es full (cid:396)espo(cid:374)si(cid:271)ilit(cid:455) fo(cid:396) the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s losses a(cid:374)d de(cid:271)ts. Can be formed with minimal legal and capital requirements. A partnership is an unincorporated enterprise owned by 2 or more individuals. There are 3 types of partnerships, and these are: general partnerships, limited partnerships, joint ventures. A partnership agreement expresses the rights and obligations of each partner. Corporations a(cid:396)e (cid:272)(cid:396)eated (cid:271)(cid:455) la(cid:449) a(cid:374)d a(cid:396)e eparate f(cid:396)o(cid:373) the people (cid:449)ho o(cid:449)(cid:374) a(cid:374)d (cid:373)a(cid:374)age the(cid:373) the(cid:455) a(cid:396)e also referred to as limited companies. Ownership is represented by shares of stock, with a board of directors that appoint company officers and set company objectives. F(cid:396)o(cid:373) a(cid:374) o(cid:449)(cid:374)e(cid:396)"s poi(cid:374)t of (cid:448)ie(cid:449), (cid:272)o(cid:396)po(cid:396)atio(cid:374)s a(cid:396)e the least (cid:396)isk(cid:455), ho(cid:449)e(cid:448)e(cid:396), a(cid:396)e (cid:373)o(cid:396)e e(cid:454)pe(cid:374)si(cid:448)e a(cid:374)d (cid:272)o(cid:373)pli(cid:272)ated to establish (as well as legal costs). As well, dividends to shareholders are taxed twice.