MGMT 3100 Chapter Notes - Chapter 24: Limited Liability Partnership, Sole Proprietorship, General Partnership
17 Jul 2016
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Business in canada carried in 1 of following forms: Formed through legislation and registration w/ government. Can be created with single shareholder and director. On onset of business, people must decide whether they want to incorporate. However, number of professions don"t allow practice to be incorporated: sole proprietorship or partnership only option. Sole proprietorship: an unincorporated business owned by a single individual. Business activity still subject to regulations and laws. May have to obtain license on particular business: ex. Must make payroll deductions for employee taxes, insurance etc. Must observe human rights legislation when hiring. Name must be registered if it isn"t under actual name of owner. Partnership: the relationship between 2 or more persons carrying on a business w/ a view to profit. May be natural persons (individuals) or legal persons (corporations) Members can pool their knowledge, skills, and resources. Dishonesty or incompetence of one member may lead to losses for others.
