COMM 100 Lecture Notes - Lecture 15: Sole Proprietorship, Limited Liability, General Partnership
Document Summary
Week 5 chapter 6: forms of business ownership. One person owning and operaing a business, without forming a corporaion. In a sole proprietorship, the business and the owner are a single enity. Liability if oten just another word for debt, but also has wider and important meaning. It includes the responsibility to pay all normal debts. When you work for other, it is their problem if the business is not proitable. When you own your own business, you and the business are considered one. You have unlimited liability; that is, any debts or damages incurred by the business are your debts, and you must pay them. When you have a sole proprietorship, you have unlimited liability. An owner (partner) who has unlimited liability and is acive in managing the irm. Partnership in which all owners share in operaing the business and in assuming liability for the business"s debts.
