BUS 150 Chapter Notes - Chapter 5: Limited Liability Partnership, Sole Proprietorship, General Partnership

• School: Pace University
• Department: Business
• Course: BUS 150
• Professor: Elliott Malki

Document Summary

Partnership: there"s a number of people that get together. Corporation: an entity that exists on its own, like an individual. (you rise, it rises; you fall, it falls) Corporate governance: policies, procedures, relationships & systems in place to oversee the successful & legal operations of the enterprise. Shareholders (elect) board of directors (hire/fire) corporate officers (hire/fire) employees. 2 or more owners; one or more general partners manage the business; limited partners don"t participate in the management. same as for general partnership: profits & taxation: Corporation: control, profits & taxation: unlimited # of shareholders; no limits on stock classes or voting arrangements; ownership & management of the business are separate (shareholders in public corporations are not involved in management decisions. Finite life span. (it lives with you; you die it dies with you, unless you sell it. ) Ability to raise capital (cash b/c they can sell stock). Reporting requirements (must report to stockholders, the gov"t, basically everyone).