MGT 201 Lecture Notes - Lecture 8: Equal Voice, Limited Liability Partnership, General Partnership
Document Summary
How much government do you have to have? a. More government approval, more diicult and more costly: coninuity/ stability a. b. owner, control. How is the life of the business organizaion ied to the life of the. How easily can the business organizaion dissolve a. How much control does the owner want of the day to day operaions: owner liability a. How much personal liability do you have as the owner of the business enity a. Is there a marketplace for ownership interest ii. Sole proprietorship-- most common: creaion-simple, coninuity- life of owner, control -- great, liability -- personal, taxaion -- single; owner gets taxed, retained earnings, cannot transfer proprietorship, retain employees -- diicult, raise capital --diicult ii. If a partner leaves or added the partnership is dissolved. 1: company can sill run, each partner -- equal voice, can agree otherwise. Joint & several: all personal assets are exposed, taxaion -- simple, transfer - impossible ii.
