Chapter 13: intro to capital and financial markets. Factors that determine legal structure: ease of set-up, degree of control, magnitude of risk, financial capacity, required skills. Joint and several liability refers to the liability obligation of partners as the result of a legal contract. One partner can be held liable if others" cannot pay their portion of the partnership"s debt. A buy-sell agreement is a written agreement among the partners that details the sale by one partner and the purchase by another of the business interest of the selling partner. Limited liability partnerships are partnerships that are made up of both general partners (at least one) and limited partners. Limited partners only contribute equity capital, but do not manage the business" operations (as such, they are only liable for what they invested). Corporation is a business entity that, legally, is separate and distinct from its owners.