16/10/2021
Corporation
- A separate legal entity owned by shareholders.
- Owners(shareholders) of a corporation are not personally liable for its obligation. They have limited liability only to their investment amount in the corporation.
- Ownership and control of a corporation are separated.
Other forms of Business Organization
Sole Proprietorships - usually local small mom-and-pop stores. Unlimited liability.
Partnership - formed by a partnership agreement. Unlimited liability.
Limited partnership- partners are classified as general and limited. General partners manage the business and have unlimited personal liability for its debt. Limited partners are liable only for the money they invest and do not participate in management.
Some Hybrid form
Limited liability partnership (LLP) or Limited liability company (LLC)
Corporation
- A separate legal entity owned by shareholders.
- Owners(shareholders) of a corporation are not personally liable for its obligation. They have limited liability only to their investment amount in the corporation.
- Ownership and control of a corporation are separated.
Other forms of Business Organization
Sole Proprietorships - usually local small mom-and-pop stores. Unlimited liability.
Partnership - formed by a partnership agreement. Unlimited liability.
Limited partnership- partners are classified as general and limited. General partners manage the business and have unlimited personal liability for its debt. Limited partners are liable only for the money they invest and do not participate in management.
Limited liability partnership (LLP) or Limited liability company (LLC)