Forms of Business Organization

Unlimited personal responsibility for all debts and for other liabilities that the business may incur is only possible in a sole proprietorship form of business.

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Limited partners do not usually share in the managerial control of the business.

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When one partner is served with a summons and complaint against the firm, all the partners are deemed to have received the notice, even if they are not informed.

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The partnership and all partners are liable when any partner commits a tort while acting within the scope of the firm's business.

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A corporation that files for bankruptcy must be dissolved.

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Of the three principal forms, the simplest, most flexible, and easiest to start is the sole proprietorship.

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The directors have a fiduciary duty to the corporation.

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The biggest disadvantage of a corporation us the inability to transfer ownership rights in it.

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A corporation cannot acquire and hold stock in other corporations.

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The major advantage of the corporate form over the partnership form us in the way the corporate form is taxed.

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