Law 294 - Chapter 21

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Author:
LoveStorm
ID:
54525
Filename:
Law 294 - Chapter 21
Updated:
2010-12-09 00:41:25
Tags:
LAW
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Description:
Basic forms of business organizations
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  1. What is a sole proprietorship?
    When a person carries on business on their own without adopting any other form of business organization.
  2. What are advantages and disadvantages of sole proprietorships?
    ADVANTAGES:

    • Simple and easy to set up.
    • Easy to dissolve - stop carrying on business.

    DISADVANTAGES:

    Unlimited personal liability
  3. How are sole proprietorships created?
    The name must be registered if it is something other than, or more than, the propietor's personal name.
  4. What is a general partnership?
    A form of business organization that comes into existence when two or more persons carry on business together with a view of profit.
  5. What is dissolution and how can it occur in a partnership?
    Dissolution is the termination of the partnership relationship.

    • Occurs when:
    • One person gives notice of termination to the others.
    • A partner dies or becomes insolvent.
    • The partnership is set up for a specfic purpose or for a limited time, such as to operate a gardening business for one summer and that purpose has been achieved or that time has expired.

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