Beruflich Dokumente
Kultur Dokumente
Chapter 1
Getting Started—
Principles of Finance
Business
Forms
Sole
Partnerships Corporations
Proprietorships
• Advantages:
– Easy to form
– No need to consult others while making decisions
– Profits are taxed at the owner’s tax rate
• Disadvantages:
– Personally liable for the business debts
– The business ceases on the death of the proprietor
– Limited access to external sources of financing
• Disadvantages:
– Partners jointly share unlimited liability
– It is not always easy to transfer ownership
It is common for LPs to require approval from the other partners before a partner’s ownership can be transferred.
1