BMGT 110 Chapter Notes - Chapter 5: Master Limited Partnership, Limited Liability Partnership, Sole Proprietorship

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 110
• Professor: Howard Frank

Document Summary

Sole proprietorship - a business that is owned and usually managed by one person. Parmership - a legal form of business with two or more owners. Corporation - a legal entity with auhority to act and have liability apart from its owners. Ease of starting and ending the business. The right to perticipate in managing the operations of the business. Shared management and pooled/complementary skills and knowledge. Unlimited liability - the risk of personal losses. Few fringe benefits - no paid health insurance, no paid disability insurance, no pension no vacantion pay etc. Limited life span for the business debts. General partnership - all owners share in operating the business and assuming liability. Limited partnership -has one or more general partners and one or more limited partners. General partner - is an owner who has ulimited liability and is active in managing the firm every partnership must have at least one.