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Lucas Johnston worked in sales for a multinational organization based in Winnipeg, Manitoba. When the organization announced it was providing an early retirement package, Johnston
Lucas Johnston worked in sales for a multinational organization based in Winnipeg,
Manitoba. When the organization announced it was providing an early retirement
package, Johnston was one of the first staff members to apply for a package and to be
accepted. He decided to use the newfound capital to support the purchase of a store he
and his partner, an advertising manager, had been looking at forever. While they had
great ideas on how to grow the business, they were unsure about the legal form their
organization should take. An accountant friend suggested they form a corporation, but
another said they just needed a simple partnership agreement. The purchase of the
store would take most of Johnson's retirement package, and he needed to make a good
choice.
a What are three to five key points Johnston and his partner should understand
about a general partnership?
b What are three to five key points they should understand about a private
corporation?
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