BSAD 101 Chapter Notes - Chapter 5: Limited Liability, Sole Proprietorship, C Corporation

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

Document Summary

Compare the advantages and disadvantages of sole proprietorships. A sole proprietorship is a business that is owned and usually managed by one person; it is the most common form of business ownership. A partnership is a legal form of business with two or more owners. A corporation is a legal entity with authority to act and have liability separate from its owners. Describe the differences between general and limited partners, and compare the advantages and disadvantages of partnerships. All owners share in operating the business and assuming liability. Has unlimited liability and is active in managing the firm. Has one or more general partners and one or more limited partners. Invests money but has no management responsibility, liability is limited to the investment amount. Compare the advantages and disadvantages of corporations and summarize the differences between c corporations, s corporations and limited liability companies. Possible conflict with stockholders and board of directors.