LAW 122 Midterm: Law 122 Midterm #2 Notes

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

A sole proprietorship exists when a person carries on business on their own, without adopting any other form of business organizations. The main advantage of a sole proprietorship is that it is simple and easy to set up. Unlimited personal liability: means that third parties may take all the sole proprietors personal assets to satisfy the business obligations. Chapter 21 basic forms of business organizations. A sole propitiator is exclusively responsible for preforming all contracts. The sole propitiator is exclusively responsible for all torts committed entered into in the course of business, including contracts with customers, suppliers, employees, and lenders personally in connection with the business within the course of employment directly. The only method of financing for the sole proprietor is to borrow money. That person is also vicariously liable for all torts committed by employees: insurance, incorporation. The name of the sole proprietorships must be registered if that name is something other than the sole proprietorships personal name.