SMG SM 131 Lecture Notes - Lecture 1: Sole Proprietorship, Limited Liability, Byrsonima Crassifolia

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

However shareholders have limited liability as compared to a sole proprietor who may have to give up personal assets: impact on society and the environment - making a pro t and doing good for others. Types of business forms (chapter 5, how to form a business, pg. 118-134 in understanding business by nichels) Sole proprietorship: owned and managed by one person, biggest form of business in the us but generates least amount of revenue, advantages: Ease of starting and ending business - not a lot of lling or fees, no separate entity tax. Pride of ownership - leaving a legacy. Limited nancial resources and few fringe bene ts. Shared management and pooled/complementary skills and knowledge. Generally have a partnership agreement deciding on several factors. No separate taxes and paperwork: disadvantages: Unlimited liability (depending on type of partnership) - both are equally responsible for any damage or mistakes.