BUS 1 Lecture Notes - Lecture 6: Joint Venture, Double Taxation, Limited Liability Company
Document Summary
Unlimited liability for debts/personal absorption of all losses. Unlimited liability for general partners: potential for conflict between partners, sharing of profits, and difficulty exiting or dissolving the partnership. Stockholders can sell or transfer their shares at any time and are entitled to receive profits in the form of dividends. Advantages of corporations include limited liability, ease of transferring ownership, unlimited life tax deductions, and the ability to attract financing. Disadvantages include double taxation of profits, the cost and complexity of formation, and government restrictions. Limited liability companies, cooperatives, joint ventures, and franchises. Businesses can also organize as limited liability companies, cooperatives, joint ventures, and franchises. Limited liability company (llc) provides limited liability for its owners but is taxed like a partnership: cooperatives are collectively owned by individuals or businesses with similar interests that combine to achieve more economic power. Two types of cooperatives = buyer and seller cooperatives. Franchising one of the fastest-growing forms of business ownership.
