COMMERCE 1E03 Chapter Notes - Chapter 6: Limited Liability Partnership, Limited Liability, General Partnership
23 Feb 2015
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Sole proprietorship a business owned and usually managed by one person. Partnership when two or more parties legally agree to become co-owners of a business. Corporation a legal entity with authority to act and have liability separate from its owners. Liability- is often just another word for debt. Unlimited liability- any debts or damages incurred by the business are your debts and you must pay them. General partnership a partnership in which all owners share in operating the business and in assuming liability for the business"s debts. Limited partnership is a partnership with one or more general partners and one or more limited partners. General partner is an owner who has unlimited liability and is active in managing the firm. Limited partner an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
