Management and Organizational Studies 2275A/B Chapter 14: Business Forms and Arrangements

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Choosing how to own a business determines who: Makes and is accountable for management decisions. An unincorporated business organization that has only one owner; not a separate legal entity. Any obligation of the business is the owner"s personal obligation. Sole proprietor has unlimited liability unrestricted legal responsibility for obligations. Absence of sole proprietor can adversely affect business. No formal or specialized tax rules; profits and losses reported on the owner"s personal income tax return. Cannot be transferred or sold to another because it has no legal status. Assets associated with business are transferable (inventory) Simple and inexpensive (minimal legal requirements for establishment) Subject to same general legislation as any other business form (registration and licensing of business generally persons who offer specialized services must be licensed to practice) Must register any name if they want to use one other than their own.