MGMT 3100 Lecture Notes - Lecture 7: Sole Proprietorship, General Partnership, Income Tax
27 Dec 2015
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Document Summary
Sole proprietorship and partnerships come into existence without gov"t involvement. Corporations can be created with a single shareholder/director. Many professions do not allow their members to carry on their practice in form of a corporation. Unincorporated business owned by a single individual. Business activity subject to same regulations that apply to all forms of business. Need to obtain a licence to carry on particular type of business. Relationship between two or more persons carrying on a business with a view to profit: can be formed with natural persons (individuals) or legal persons (corporations) Disadvantages: pool knowledge, skills, physical and financial resources, disagreements, dishonesty, incompetency = loss of valuable time in reaching agreement. Affairs are governed by well-developed body of laws. Case law was collected into one statute = partnership act: organized numerous cases under general principles, contains the general rules of operation. Partnership: relation between persons carrying on a business in a common view of profit.
