MGMT 1 Lecture Notes - Lecture 6: Master Limited Partnership, Limited Liability Partnership, Sole Proprietorship
Document Summary
Sole proprietorship: a business owned and managed by one person advantages. Unlimited liability- any damages done to business is debt to you. Partnership: two or more people legally agree to become co-owners of a business. General partner: an owner who is actively involved in running business with unlimited liability. Limited partner: an owner who is not actively involved in the business and whose exposure is limited to the investment in the business (limited liability) General partnerships: all owners share in operating the business and in assuming liability for the business" debts. Limited partnerships: a partnership with one or more general partners and one or more limited partners. Master limited partnership (mlp): a partnership that looks much like a corporation but is taxed like a partnership and avoids corporate taxes. Limited liability partnership (llp): limits partner"s risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision.
