MGTA01H3 Chapter 4: Chapter 4
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MGTA01H3 Full Course Notes
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Document Summary
Sole proprietorship a business owned and operated by one person. disadvantages unlimited liability personal liability for all debts of the business. hard to borrow money to start up or expand. Losses can be deducted from income of proprietor. The partnership a form of organization established when two or more persons agree to combine their financial, managerial, and technical abilities for the purpose of operating a business for profit. General partnerships a type of partnership in which all partners are jointly liable for the obligations of the business. Limited partnerships a type of partnership with at least one general partner (who has unlimited liability) and one or more limited partners. The limited partners cannot participate in the day to day management of the business or they risk the loss of their limited liability status. General partners partners who are actively involved in managing the firm and have unlimited liability.
