BUSN 101 Chapter Notes - Chapter 5: Leveraged Buyout, Master Limited Partnership, General Partnership
14 Apr 2016
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Chapter 5 how to form a business. 72% of businesses are sole proprietors but 81% of the sales come from corporaions. Easy to start and ending the business: lease equipment, permit from gov"t, no one else you need to consent. Leaving a legacy: leaving the ongoing business for future generaions. Retenion of company proits: owners keep the proits earned and beneit from the increasing value as it grows. No special taxes: all proits are taxed as personal income instead of having an extra payment. Few fringe beneits no paid health insurance, no paid disability insurance, no pension plan. Limited life span: if the sole proprietor leaves, the business ends unil an heir takes over. General partnerships all owners share in operaing the business and assuming liability for the business"s debts: general partner owner (partner) who has unlimited liability and is acive in managing the irm.
