LAW 122 Chapter Notes - Chapter 21: Limited Liability Partnership, Sole Proprietorship, Limited Liability
13 Apr 2016
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Document Summary
Each type of organizaion the law strikes a diferent balance between the interests of the categories of people who have a stake in the operaion of the business. Law determines the extent to which individual entrepreneurs beneit when their businesses prosper and the extent to which they are responsible for losses when they do not. Law also addresses the risks that other stakeholder groups experience in their relaionships with businesses - but only to a limited extent. Law also provides a structure for the operaion of businesses focusing on the relaionships that owners and managers have with the business and with each other. Comes into existence when a person starts to carry on a business alone without adoping any other form of business organizaion. Legally and pracically there is no separaion between the sole proprietorship business organizaion and the individual who is the sole proprietor. Sole proprietor cannot be an employee and gets all beneits and bears all burdens.
