MGTA01H3 Lecture Notes - Lecture 8: Amorality, Profit Motive, Paper Size

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Sole proprietorship & general partnerships appropriate for businesses that: Do(cid:374)"t (cid:374)eed a lot of (cid:373)a(cid:374)age(cid:396)ial la(cid:271)ou(cid:396) Relatively low risk (unlikely to be sued) (e. g. math tutors, wedding photographers: complex form of business: More capital than a few people can supply. Protection from personal liability (e. g. airlines, oil exploration, auto manufacturing) The economic system needs mechanisms to create and finance these kinds of business. Limited partnership: a partnership with 2 classes of partner: Ge(cid:374)e(cid:396)al pa(cid:396)t(cid:374)e(cid:396)s: (cid:373)ake de(cid:272)isio(cid:374)s a(cid:272)t as p(cid:396)o(cid:448)ide the la(cid:271)ou(cid:396) (cid:862)p(cid:396)i(cid:374)(cid:272)ipals(cid:863) (cid:271)ea(cid:396) pe(cid:396)so(cid:374)al liability, manage the business, retain decision making, retain day-to-day control, bear personal liability. Ge(cid:374)e(cid:396)al pa(cid:396)t(cid:374)e(cid:396)(cid:894)s(cid:895) (cid:373)ust (cid:272)o(cid:373)pl(cid:455) (cid:449)ith (cid:862)li(cid:373)ited pa(cid:396)t(cid:374)e(cid:396)ship a(cid:272)t(cid:863) Documentation identifies who the general partners and limited partners are. Limited partners: supply the capital (28621), no part in managing business, limited liability, has one or two general partners, has fewer rights and responsibilities, supplies the capital, helps project to occur, share in profits.