BSAD 101 Lecture Notes - Lecture 5: Limited Liability Partnership, Limited Liability, Sole Proprietorship

• School: University of Vermont
• Department: Business Administration
• Course: BSAD 101
• Professor: Pat Patel

Document Summary

A business owned and usually managed by one person. Any debts or damages incurred by the business are your debts, even if it means selling your home, car or anything else. Two or more people legally agree to become co-owners of a business. All owners share in operating the business and in assuming liability for the business"s debts. A partnership with one or more general partners and one or more limited partners. An owner (partner) who has unlimited liability and is active in managing the firm. An owner who invest money in the business, but enjoys limited liability. Limited liability means that liability for the debts of the business is limited to the amount the limited partner puts into the company; personal assets are not at risk. A partnership that looks much like a corporation, but is taxed like a partnership and thus avoids the corporate income tax.