BUAD 202 : BA 201 ex 1.docx
Document Summary
Advantages: ease of start/end, be your own boss, pride of ownership, retain profit, no special taxes. Limited financial resources: unlimited liability, management difficulty, time commitment, few fringe benefits. Types of partnerships: general: all owners share operations and liability, master limited partnership: traded publicly. Limited: one or more general partners and passive owners: taxed as a partnership. Limited liability partnership (llp): liability limited to personal acts and omissions. Corporations: private: not traded on any stock exchange, public: shares are traded on one or more stock exchanges, non-profit: performs public service, has special tax considerations to encourage formation. Other types of corporations: conventional c", s corporation, limited liability. How owners affect management corporate objectives and select managers-> managers supervise employees. Owners/stockholders elect board of directors-> board hires officers-> officers set. Conventional c": state chartered, liability separate from owners. S corporation: looks like a c-corp (limited liability) but profits taxed as personal income of shareholders.
