BUS 150 Lecture 5: Business Chapter 5 – Business In Action
Document Summary
Business chapter 5 business in action (bovee) book. Advantages: simplicity, single layer of taxation, privacy, flexibility and control, fewer limitations on personal income, personal satisfaction. Limited managerial perspective: financial liability, demands on the owner, resource limitations, no employee benefits for the owner, finite life span. A legal conditio(cid:374) u(cid:374)der whi(cid:272)h a(cid:374)y da(cid:373)ages or de(cid:271)ts i(cid:374)(cid:272)urred (cid:271)y a (cid:271)usi(cid:374)ess are the ow(cid:374)er"s personal responsibility. An unincorporated company owned by two or more people. Advantages: simplicity, single layer of taxation, more resources, cost sharing, broader skill and experience base. Disadvantages: unlimited liability, potential for conflict, expansion, succession, and termination issues. A legal condition in which the maximum amount each owner is liable for is equal to whatever amount each invested in the business. A partnership in which all partners have joint authority to make decisions for the firm and joint liability for the fir(cid:373)"s fi(cid:374)a(cid:374)(cid:272)ial o(cid:271)ligatio(cid:374)s.
