BUS 200 Lecture Notes - Lecture 6: Legal Personality, Limited Liability, Limited Liability Company
6 Apr 2017
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Chapter 6: business ownership options, sole proprietorship: the business is owned by a single individual. Advantage: ease of formation, retention of control and profits, pride of ownership, possible tax advantages. Disadvantages: limited financial resources, unlimited liability, limited ability to attract and maintain talented employees, heavy workload and responsibilities: partnership: two or more people serve as co-owners of the business. Advantages: pooled financial resources, shared responsibilities, ease of formation, tax advantages. Disadvantages: unlimited liability, disagreements, lack of continuity, difficulty in withdrawing from agreement. Limited partnership: allows some partners to limit their liability (one general partner-owns the entity- and at least one limited partner: corporation: the business is a separate legal entity from its owners (larger entities like. Most common type is a c corporation. The role of board of directors: oversee the operation of their company and protect investor"s interests, establish mission and set objectives, responsible for monitoring the performance of the corporate officers.
