MGTA01H3 Lecture Notes - Lecture 8: The Province, Profit Motive
14
MGTA01H3 Full Course Notes
Verified Note
14 documents
Document Summary
Chapter 8: planning and organising a business: limited partnerships, corporations & co- operative societies: 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 others to act on behalf of a business, and who bears the liability and responsibility. Limited partner: an individual who puts capital into a business, and shares in the profit, but takes no role in management or decision-making. In order to create a limited partnership, the general partner(s) must comply with the. Limited partners, who are explicitly barred from having any decision making authority have limited liability: 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 values of his or her capital.
