BUSI 1800 Chapter Notes - Chapter 6: Limited Liability Partnership, Limited Partnership, General Partnership
2 Feb 2017
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Advantages of sole proprietorships: ease of starting & ending, retention of company the business, being your own boss, pride of ownership profit, no special taxes, less regulation. Disadvantages of sole proprietorships: unlimited liability the risk of personal losses. Unlimited liability: the responsibility of business owners for all of the debts of the business: limited financial resources, management difficulties, overwhelming time commitment. Ch 6: forms of business ownership: few fringe benefits (no paid health/disability insurance, no sick leave, no vacation pay, limited growth, limited lifespan, possibly pay higher taxes. Partnership: a legal form of business w/ 2+ parties. General partnership: partnership in which all owners share in operating the business & in assuming liability for the business" debts. Limited liability: the responsibility of a business" owners for losses is only up to the amt they invest; limited partner & shareholders have limited liability.
