Introduction to Business - Posted

Growth limited potential potential partnerships

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Unformatted text preview: upport – Human resources Limited growth Limited potential potential Partnerships Partnerships ADVANTAGES More resources More available, both financial and talent financial Can share the load Longer survival (in Longer case of departure of a partner) partner) No special taxes DISADVANTAGES Unlimited liability in some Unlimited forms of partnership forms Division of profit Potential for Potential disagreements disagreements Exit conditions must be Exit spelled out in partnership agreement agreement Traditional Types of Partnerships Traditional Limited: At least one GP; rest are silent partners General: Each partner manages firm. Passive Investor GP GP GP GP Each GP has unlimited liability. GP Passive Investor Passive Investor Passive means they cannot actively manage firm. Recap on Traditional Partnerships: Recap General vs. Limited Limited partnerships are limited in both liability of silent partners and their ability to actively manage the firm. to At least one person in a limited At partnership must be on record as the managing partner...
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This document was uploaded on 11/01/2011 for the course BUS 101 at Miami University.

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