COMM 100 Lecture Notes - Sole Proprietorship, Limited Partnership, General Partnership
Document Summary
Sole proprietorship: a business that is owned and operated by one person, without forming a corporation. Partnership: a legal form of business with two or more parties. Corporation: a legal entity with authority to act and have liability separate from its owners. For a business, it includes the responsibility to pay all normal debts and to pay because of a court order or law, for performance under a contract, or payment of damages to a person or property in an accident. Advantages of sole proprietorship: ease of starting and ending the business, being your own boss, pride of ownership, retention of company profit, no special taxes, less regulation. Disadvantages of sole proprietorship: unlimited liability the risk of personal losses, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited lifespan, possibly pay higher taxes. General partnership: a partnership in which all owners share in operating the business and in assuming liability for the business"s debts.
