A Case For A Company

1705 WordsFeb 17, 20177 Pages
They are in charge of the debts that happened because of the business. In addition, another disadvantage is continuity. This means that when the owner of the business dies the the Sole Proprietorship dies with him. The most common type of partnership is the general partnership but this is owned by more than one person. Partners can invest in equal or unequal sums of money in the investment. A silent partner is when one partner invests all of the funds needed for the business but plays no role in its management (Griffin 90). A different type of partner is is the financial investor likely owns the entire business and the labor partner owns nothings this is referred to a sweat equity (Griffin 90). An advantage of partnership is the being able…show more content…
Corporations can be all different sizes. It does not have to be a huge company like Walmart or Apple in order for it to be considered a corporation. I found it interesting that in a corporation you can invest in a stock for a certain amount of money but you will never lose more than you invested in which I was not aware of. I always thought that you could lose more money than what you invested in depending on the company. A specific legal process is a tender offer. A tender offer is an offer to buy shares made by a prospective buyer directly to a corporations shareholders, a corporation can be taken over against the will of its managers (Griffin 92). There are multiple different types of corporations. The most common type is closely held corporations. This certain type of corporation is owned by a a few people and is not available for sale to the public (Griffin 92). Secondly, a publicly held corporation is a stock widely held and available for sale to the public (Griffin 92). In addition, there is an S corporation which is a type of hybrid of a closely held corporation and a partnership (Griffin 92). Then an LLC is when the owners of the corporation are taxed like partners, each paying personal taxes only (Griffin 93). This means that whatever part of the corporation that you own is what you are going to be taxed for which I thought was very interesting because I did not

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