MGMT 1P93 Chapter Notes - Chapter 5: Limited Liability Partnership, Limited Liability, Sole Proprietorship
28 Oct 2016
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Sole proprietorship- businesses owned and usually managed by a single individual. Partnerships- voluntary agreements where two or more people act as a co-owners; there are several types. Lo2 sole proprietorships: business at its most basic-advantages. Limited ability to attract and maintain talented employees. General partnerships- all partners have the right to participate in the management of the firm, and all share unlimited liability. Limited partnership- includes at least one general partner and at least one limited partner (who has limited liability) Limited liability partnership- all partners are actively involved but they have some form of limited liability, which varies by jurisdiction. A corporation is a legal entity, separate and distinct from its owners. The board of directors establishes the mission and objectives. The board is elected by the shareholders to represent their interests, but rarely gets involves in day-to- day management. Corporation look for- growths opportunities, operational efficiencies, and competitive advantages.
