MGTA05H3 Lecture 8: MGTA05 LEC08
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MGTA05H3 Full Course Notes
Verified Note
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Document Summary
Limited partnership: a form of partnership that allows for two classes of partners: general and limited. Principal (general partner): an individual who has authority to hire and instruct to hire and instruct others to act on behalf of a business, and who bears the liability and responsibility. Act: a declaration to establish the business as a limited partnership, forbids a limited partner from working in a managerial or decision making capacity for the business. Limited liability (for limited partners): an individual"s responsibility or obligations relating to a business is limited to the amount of capital that they provided. If the business is sued, someone with limited liability can lose only the value of his or her capital. Corporation: a legal entity created to own and operate a business, which has most of the same rights and responsibilities as human beings. Have the rights to own property, hire and fire people, sue and be sued, obligation to pay tax.
