SMG SM 131 Study Guide - Midterm Guide: Limited Liability, Sole Proprietorship, General Partnership

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

Pass on the business down the family line. Not regulated by sec if it means selling your home, car, etc. Unlimited liability -any debts and damages incurred by the business are your debts, even. Two or more people legally agree to become co-owners of a business. Shared management and complementary skills and knowledge. Topics covered: business forms, corporate governance, accounting, marketing. A business owned, and usually managed by one person; 72% of all businesses. Limited liability like a c corp but taxed like a partnership. Loses favorable tax status if it goes public. A corporation can be partner in llc. A state-chartered legal entity with authority to act and have liability apart from its owners (stockholders) Stocks- shares of ownership in a company the profits if dividends are approved. Common stock -most basic form; right to vote for board of directors and share in. Preferred stock -dividends paid first before common stockholders; no right to vote.