COMM 100 Study Guide - Midterm Guide: Limited Liability Partnership, Leveraged Buyout, Sole Proprietorship
Document Summary
The responsibility for a business to pay all normal debts under a court order, or for performance under a contract. Sole proprietorship: a business owned and managed by one person. No special taxes all personal income tax. X unlimited liability: responsible for all debts of the firm, might even have to sell personal assets. X possibly pay higher taxes that are not business incorporated. Partnership: a legal form of business where two individuals or corporations come together. General partnership: all owners are liable for company"s debts all owners manage the company. Limited partnership: a partnership where there are both general partners and limited partners. General partner: owner who manages the company and has unlimited liability. Limited partner: owner who does not manage the company and has only limited liability to the extent of their investments. Limited liability: a partner of a company whom invests and can only loose the amount of their investments.
