LAW 122 Lecture Notes - Lecture 7: Limited Liability Partnership, Sole Proprietorship, General Partnership
17 Mar 2018
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Document Summary
Consequences: liability and benefits of entrepreneurs and other stakeholders differ depending on type used. Governance: owners/shareholders, managers/executives, company rights, stakeholders, default position from ancient times, main problems. Personal liability for contracts and torts: raising funds, income tax, statutory problems, register name or consequences. Advantages: simple to start; simple to administer, possible tax advantages. Disadvantages: unlimited personal liability, can only raise money by personal borrowing, as business grows, these problems continue to grow. Conclusion: a sole proprietor is best suited for small business. Partnerships: general partnership, most partnerships, limited partnership, investments, limited liability partnership, professionals, joint venture, nature resources extraction, high risk. General partnerships: exists when two or more people carry on business together with a view to profit. Partnerships and relationships: carrying on business together; not a casual, one-off transaction. Characteristics: two or more people carry on business with a view to a profit.
