BUSI 561 Chapter Notes - Chapter 17: Franchising, Sole Proprietorship, General Partnership
Document Summary
Factors influencing the choice of organizational form (6) Potential liability of the owners: tax ramifications, control considerations, ease and expense of formation and operations, transferability of ownership interests. Sole proprietorship: a business owned by one person, who has sole control over management and profits. Partnership: a voluntary association of two or more persons formed to carry on a business as co- owners for profit. General partnership: a partnership in which management responsibilities and profits are divided (usually equally) among the partners, and all partners have unlimited personal liability for the partner"s debts. Winding up: the process of completing all unfinished transactions, paying off outstanding debts, distributing assets, and dividing remaining profits after a partnership has been terminated or dissolved. Joint stock company: a partnership agreement in which members of the company own shares that are transferable, but all goods are held in the name of the members, who assume partnership liability.
