Unformatted text preview: returns • General partners make day-to-day decisions about the business and have unlimited liability • Limited partners have limited involvement (do not make day-to-day decisions) • Capital account – separate account for each partner • Drawing account – Keeps track of amounts withdrawn by a partner • If you want to leave your partnership, you have to find another partner to take your place, or discuss your leave with your partners Corporation: Legally separate from its shareholders • Shareholders have limited liability • Have corporate tax in addition to personal income tax • Board of directors = decision makers • Most a shareholder can lose is his investment in the share • Corporations can raise additional capital much more easily than partnerships since they can issue more shares or bonds...
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- Fall '08
- LA ROCCA
- Business Law, Corporation, partner, Types of companies