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Unformatted text preview: Risks: Each partner is liable for all the debt incurred by the business Each partner is responsible for the action of all other partners that creates an obligation for the business 3. Corporation A corporation is a legal form of organization made possible by state laws. It is an impersonal entity and exists without reference to particular individuals who may share its ownership and direct its activities. Benefits: Liability is limited to the amount of funds invested in the business A corporation is long-lived Capital is easier to raise Ownership in the corporation is easily transferred Risks: Government reports must be filed Federal and state regulations of corporations are increasing Subject to more taxes than a properietorship or partnership...
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- Fall '08