MGMT 1 Chapter Notes - Chapter 5: Limited Liability Company, S Corporation, Limited Liability Partnership
21 Jul 2016
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Unlimited liability the responsibility of the business owners for all of the debts of the business (the risk of personal losses) General partnership a partnership in which all owners share in operating the business and in assuming liability for the business"s debts. Limited partnership a partnership with one or more general partners and one or more limited partners. General partner an owner (partner) 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 investment. Limited liability the responsibility of a business"s owners for losses only up to the amount they invest; limited partners and shareholders (stockholders) have limited liability. Limited liability partnership (llp) a partnership that limits partners" risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
