ACTG 1P71 Lecture Notes - Lecture 10: Sole Proprietorship, Limited Liability Partnership
1 Apr 2016
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Unlimited liability (no borderline between him/her and the business in terms of liability, personal assets can be taken as security) Subsists (exists in substance) where two or more persons carry on business with a common with the view to profit. Unlimited, joint liability (all partners responsible for all debts), unless limited partnerships or limited liability partnership (llp) Somebody can be given a share of the profit as compensation but not be considered a partner. Partnerships can be created inadvertently (without knowledge of partnership), although usually created by agreement. Partnerships" act: outlines regulations between partners, is the default set of rules if no agreement for partnership is set. Everybody has equal rights to participate in management. Nobody has a right to receive a salary, unless agreement outlines it as so. Entrance of a new partner requires z to either invest new assets or buy part or all of either x or y"s shares.
