SOSC 1520 Lecture Notes - Lecture 3: Private Limited Company, Sole Proprietorship, Limited Partnership
Document Summary
General partnership: each partner is jointly shares in the profits and the debts. Limited partnership: arrangement where a person can contribute to a business without actually being involved in the affairs of the partnership (silent partner), your liability is only limited to the amount that youve invested. To remain a limited partner you cannot act on behalf on the company or in its management (that"s called general manager). -> limited escapes liability but you have no say in any of the business. Limited liability: usually only available to professionals such as lawyers, accountants or doctors. Can sign contracts can borrow money better chance of getting a loan than a sole proprietor. - people with diff skills can bring them to the table. - one partner can be held responsible for all debts. - as a partner you can be held responsible for acts committed by another partner. Private limited company: limited liability/legal protection for shareholders but places restrictions on owners.