MGTA05H3 Lecture Notes - Lecture 10: Sole Proprietorship, Limited Liability, General Partnership
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Corporatio(cid:374)s look for people (cid:449)ho ha(cid:448)e e(cid:374)trepre(cid:374)eurship skills, e(cid:448)e(cid:374) if (cid:455)ou do(cid:374)"t (cid:449)a(cid:374)t to start your own business. General partnership: a business that is directly owned by 2/more people acting together. (co-owned) Partner: an individual who shares ownership and management of a business. Like sole proprietorship, partnership has no required paperwork. In law, a general partnership exists when two or more people: More credibility (more tha(cid:374) (cid:1005) o(cid:449)(cid:374)er, (cid:373)ore trust(cid:449)orth(cid:455), (cid:862)ha(cid:448)e to talk a(cid:271)out it to (cid:373)(cid:455) part(cid:374)er(cid:863) Joint and several liability: each partner is responsible for debts and liabilities of the partner, e(cid:448)e(cid:374) if it"s (cid:272)aused (cid:271)(cid:455) a(cid:374)other part(cid:374)er. To avoid later conflict, at the outset, the partners should record: An agreement between the partners intended to anticipate internal conflict. When you and your friend discover that your business is failing: you might start to fight. A mistake by one of your partners means you can be sued. Be sure you know and trust your partners.
