MGTA05H3 Chapter Notes - Chapter Section B: Vivarium Inc., Financial Institution, Privately Held Company
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MGTA05H3 Full Course Notes
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Document Summary
A business owned and operated by one person. Tax benefit, most businesses suffer losses in their early stages. Unlimited liability, personally responsible for all debts and legal liabilities. Lack of continuity, dissolves when the owner die. Formed when two or more persons operate a business for profit. Required by law to carry on their businesses as a partnership. Two types: general partnership (most) & limited partnership. General partnership: all partners are personally liable for the debts and other liabilities of the partnership business. Limited partnership: at least one limited partner, not personally liable for the debts and other liabilities of the partnership business. Ability to grow by adding talent and money. Invite new partners to join by investing money. Begin with an agreement, written, oral, or unspoken. Each partner held personally liable for all debts incurred in the name of the partnership. A partnership provides little or no guidance in resolving conflict between the partners.
