COMMERCE 1E03 Chapter 6: Chapter 6
8 Mar 2017
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Document Summary
Sole-proprietorship - a business that is owned, and usually managed, by one (1) person. Partnership - a legal form of business with two or more parties. Corporation - a legal entity with authority to act and have liability separate from its owners. Sole-proprietorship - one owner, oldest form of business. Advantages: ease of starting and ending, be your own boss, pride of ownership, retain profits, you keep all profit after costs, no special taxes, less regulation. More expensive as sole proprietor: limited growth, limited lifespan, possibly pay higher taxes, private corporation? i. Are you better off registering business as sole proprietor or private corporation. Unlimited liability - the responsibility of business owners for all of the debts of the business. Partnership - two or more people running a business. Can not involved in managing business (limited partner cannot) General partnership - a partnership in which all owners share in operating the business and in assuming liability for the business"s debts.
