COMMERCE 1E03 Chapter Notes - Chapter 6: Sole Proprietorship, Limited Partnership, General Partnership
30 Jan 2019
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Sole proprietorship: a business that is owned, and usually managed, by one person. Partnership: a legal form of business with two or more parties. Corporation: a legal entity with authority to act and have liability separate from its owners. Unlimited liability: the responsibility of business owners for all of the debts of the business. General partnership: a partnership in which all owners share in operating the business and in assuming liability for the business"s debts. Limited partnership: a partnership with one or more general partners and one or more limited partners. General partner: an owner (partner) who has unlimited liability and is active in managing the firm. Limited partner: an owner (partner) who invests money in the business but does not have any management responsibility or liability for losses beyond the investment. Limited liability: the responsibility of a business"s owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.
