Chapter 33 Sole Proprietorships & Partnerships. Introduction . Entrepreneurs wishing to start a new business must be aware of advantages and disadvantages of various business entities for their endeavor. Consider: Ease of creation. Owners’ liability. Tax considerations. Need for Capital.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The owner is the business; anyone who does business without creating a separate business organization has a sole proprietorship.
(General)Partnership is created when two or more persons agree to carry on business for profit as co-owners with equal right to manage and share profits (UPA).
Partner Rights in Partnership Property (cont’d)
Duties and Powers of a Partner:
By Operation of Law:
By Judicial Decree:
To avoid liability for apparent authority, apply the agency rules by giving:
Partners have no authority after dissolution occurs except to:
Partners can agree in advance that, in the event of the death of one of the partners or some other event, what occurs: e.g., how much the deceased partner or her estate will get for interest, or whether the other partners can acquire the partnership interest. Partnership can buys life insurance to cover this accounting on partner’s death.