COMMERCE 1E03 Chapter Notes - Chapter 6: Leveraged Buyout, Franchise Agreement, Privately Held Company
28 Dec 2014
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Sole proprietorship business owned, and usually managed, by one person. Partnership two or more parties legally agree to become co-owners of a business, the organization. Corporation legal entity with authority to act and have liability separate from its owners. Liability just another word for debt, but it also has a wider and important meaning. Liability for a business includes the responsibility to pay all normal debts and to pay: because of a court order, because of a law, for performance under a contract, for damages to a person or property. General partnership partnership in which all owners share in operating the business and in assuming liability for the business"s debts (partner) who has unlimited liability and is active in managing the firm. Limited partnership partnership with one or more general partners and one or more limited partners who invests money in the business but does not have any management responsibility.
