MGTA02H3 Chapter Notes -Legal Personality, Sole Proprietorship, General Partnership

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27 Jun 2012
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MGTA02H3 Full Course Notes
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MGTA02H3 Full Course Notes
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Chapter 4: understanding legal forms of business organization. The sole proprietorship business owned by one person (considered extension of self not separate legal entity: advantages. Unlimited liability personal liability for all debts of the business. Lack of continuity (dissolves when owner dies) Dependent on resources of one person (hard to get cash funding from others) The partnership two or more persons combine financial, managerial and tech abilities for the purpose of operating a business for profit. General partnerships partnership n which all partners are jointly liable for the obligations of the business (all unlimited liability; share all profit) Limited partnership partnership with at least one general partner (who has unlimited liability) and one or more limited partners. Limited partners cannot participate in the day to day management of the business or they risk the loss of their limited liability status: advantages. Ability to grow by adding talent and money. Ability to invite new partners to join by investing money.