MGTA01H3 Chapter Notes - Chapter 4: Sole Proprietorship, Legal Personality, Initial Public Offering
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MGTA01H3 Full Course Notes
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Document Summary
A business owned and operated by one person. Personal liability for all debts of the business. A form of organization established when 2+ people agree to combine their financial, managerial, and technical abilities for the purpose of operating a business for profit. Ability to grow by adding talent and. Can invite new partner to join by conflicts between the partners investing money. A type of partnership in which all partners are jointly liable for the obligations of the business. Unlimited liability - have to pay the debt from their personal assets if necessary. Every partner is responsible for debts of partnership no matter who incurred. A type of partnership with at least one general partner (unlimited liability) and one or more limited partner. The limited partners cannot participate in the day-to-day management of the business or they rick the loss of their limited liability status. General partners partners who are actively involved in managing the firm and have unlimited liability.
