MGSC30H3 Chapter Notes - Chapter 21: Search Report, Sole Proprietorship, Corporate Finance
Document Summary
Sole proprietorship: exists when a person carries on business on their own, without adopting any other form of business org. Legal req for sole proprietorships: name must be registered if that name is something other than, or more than, proprietors personal name, business license: gov permission to operate a certain kind of business. Partnership legislation and partnership agreements: partnership agreement: contract between partners regarding the operation of the. Managing the risk that a business relationship will be found to be a partnership: do, negotiate to restructure business org so that it"s not a partnership. Insist that the contract governing relationship state that the relationship is not a partnership. Insist upon sufficient compensation to reflect any residual risk that you may be found to be a partner: don"t, enter relationship without seeking advice from lawyer. Clients who dealt with the firm prior to your departure -> may still be liable.
