BU231 Chapter Notes - Chapter 24: Sole Proprietorship, General Partnership, Legal Personality
Document Summary
Sole proprietorships and partnerships come into existence without government involvement - the actions of the individuals involved establish the business. If you want to incorporate your business, legality advice should be sought. Sole proprietorship: an unincorporated business owner by a single individual. Business activity still subject to same regulations that apply to all forms of business: may have to obtain a licence to carry on a particular type of business. Advantages and disadvantages: partnership: relationship between two or more persons carrying on a business with a view to profit, advantages: Combined physical and financial resources: disadvantages: The partnership act: partnership affairs are governed by this developed body of laws in order to mitigate problems. The definition of partnership: the partnership relationship. Partnership is a consensual and contractual relationship: the business nature of partnership. Must be business; doesn"t apply to charities, public boards. Isolated business transactions undertaken do not by themselves make two parties partners: the profit motive.
