FINA1221 Lecture Notes - Lecture 1: Sole Proprietorship, Double Taxation, Byrsonima Crassifolia
Document Summary
Business owned and run by one person. Easy to create but unlimited personal liability, limited life, di cult to transfer ownership. All partners are personally liable for debt. Partnership ends with death or withdrawal of any partner. Limited partnership has two types of owners. Have one partner who makes the decisions and has all liability, while other partners are limited partners so have minimal personal liability and minimal decision making power, they just contribute nancially. Have the same rights and liability (equal) Run the rm on a day to day basis. Have limited liability + have no management authority. Private - unlisted usually, don"t have to appoint auditors etc. Has an in nite life (doesnt die out when its owners do like the others), arti cial being. Responsible for its own obligations - not personal investments, money only comes from the company itself. Corporation is not liable for any personal obligations (bc shareholders)
