MGMT 1 Chapter Notes - Chapter 3: Import Quota, Sole Proprietorship, Limited Liability Company
Document Summary
Slapped tariffs on foreign steel to help the american steel industry (protective tariff) Import quota: you can only export so much of one good. Cons: everything you own (personal wealth) is at risk, harder to grow business (no financing, very difficult to get money), officially dies when owner dies. Master limited: have stock traded as if they were corporations, hybrid of limited liability partnerships and limited liability corporation. Pros: longer survival, 4x more likely to succeed (more financial resources and knowledge) Have to be careful about who you go into a partnership with: what is each person contributing, how will decisions be made? o. Owners were generally the managers, became people that owned stock (divide between ownership and management in corporations) Spent for stock, business goes under, only loss is ) Drawback of sole proprietorship and many partnerships: unlimited liability.
