SSH 301 Lecture Notes - Lecture 4: Limited Liability Partnership, Sole Proprietorship, Limited Partnership
17 Oct 2017
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Lo1: describe the characteristics of the three basic forms of business ownership . Limited liability: when owners are not personally liable for claims against their firm. Limited liability owners may lose their investment in their company, but their personal assets are protected. Lo2: discuss the advantages and disadvantages of a sole proprietorship . Limited ability to attract and maintain talented employees: Lo3: partnerships: two heads (and bank rolls) can be better than one. Limited partnership: a partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability. Limited liability partnership: a form of partnership in which all partners have the right to participate in management and have limited liability for company debts. Lo4: explain why corporations have become the dominant form of business ownership .
