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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not make day-to-day decisions) Capital account separate account for each partner Drawing account Keeps track of amounts withdrawn by a partner If you want to leave your partnership, you have to find another partner to take your place, or discuss your leave with your partners Corporation: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