MGTA05H3 Chapter Notes - Chapter B: Canada Business Corporations Act, Chief Executive Officer, Sole Proprietorship

• School: UTSC
• Department: Management (MGT)
• Course: MGTA05H3
• Professor: H Laurence

Document Summary

Sole proprietorship: business owned and operated by one person. Advantages: freedom, easy to form, simplicity of legal setup procedures, tax benefits. Disadvantages: unlimited liability personally liable (responsible) for all debts and legal liabilities incurred by business, lack of continuity dissolves when owner dies, depends on resources of one person, hard to borrow money. Partnership: formed when two or more persons operate a business for profit. There are two basic types of partnership. General partnership: all of the partners share in the profits of business and have a say in managing the business, all partners are personally liable for the debts. Advantages: ability to grow by adding talent and money, easier time borrowing funds, simple to organize, with few legal requirements, all partnerships must begin with an agreement (private doc. ) How will disagreements be resolved, who invested what sums of money, who does what and who reports to whom, etc.