FM 116- Final Exam Guide - Comprehensive Notes for the exam ( 24 pages long!)

• School: FIT
• Department: Fashion Business Management
• Course: FM 116
• Professor: Robert Reid

Document Summary

Liability: claims that outsiders have against a firm"s or person"s assets, or being responsible for something, especially by the law. usually actively manages the company co-owners of a business. Partnerships: a voluntary agreement under which two or more people act as. In the u. s. there are many sole proprietorships, but revenue is largely driven by corporations. Pros: ease of formation (minimal paperwork and costs), retention of control. No limit to the number of partners. All partners can take an active role in managing the business and have unlimited liability for claims against them. Verbal or written agreement details out initial financial contributors, duties and responsibilities, how profits and losses will be shared, how disagreements, death, withdrawal, etc. will be dealt with. Includes at least one general partner who actively manages the company and accepts unlimited liability. Other partner gives up the right to actively manage the company in exchange of limited liability.