COMM231 Chapter Notes - Chapter 14: Limited Liability Partnership, Sole Proprietorship, Joint Venture

• School: University of Waterloo
• Department: Commerce
• Course: COMM231
• Professor: Joseph Radocchia

Document Summary

This chapter is a broad introductory chapter to the major forms of business organizations, particularly the sole proprietorship, the partnership, and the corporation. Choosing a form of business organization is critical to such issues as liability, who can share in profits, and who is entitled to manage and govern the business. This provides essential background material for those of you who have not already studied these concepts. Forms of business organization: determine in large part. Shares in business profits and other assets. Makes and is accountable for management decisions: sole proprietorship: unincorporated business organization that has only one owner simplest form of business organization. Any business obligation is personal obligation owner is the business: if the business borrow a loan and cannot repay, owner"s personal and business assets are subject to the debts. Breach of contract: e. g. if business supplies defect products to customer, owner is the one in breach of contract, owner"s asset will be at risk.