MGFB10H3 Chapter 2: Chapter 2 Notes
Document Summary
Revenue agency (cra) on an annual income tax return. Summary of learning objectives: list the four forms of business organizations and describe the advantages and disadvantages of each. corporate finance associates and consultants professionals who advise on restructuring, small scale m&a, corporate financing. Sole proprietorship: a business owned and operated by one person. Disadvantages: the business is inseparable from the owner; there is unlimited legal liability; net income is taxed at personal marginal tax rate; financing is limited to the resources of the single owner. Partnership: a business owned and operated by two or more people. Advantages: it combines the financial resources and talents of its partners; liability is spread across the partners. Disadvantages: income is taxed at the individual"s marginal tax rate; there is unlimited legal liability. Trust: a legal organization in which assets are owned and managed, or controlled by different parties.
