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  • Selecting the Optimal Business Structure: An Analysis of the Four Major Forms of Business Ownership

     

    Essays2 Economics

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ID number:544184
 
Evaluation:
Published: 11.04.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

There are three types of partnerships: (1)general partnerships, (2) limited partnerships, and (3)limited liability partnerships (LLP). A general partnership is a partnership in which all owners share in the management and operation of the business and in assuming liability for the businesses debts. Limited partnerships have one or more limited partners who invest money into the business but do not share in the management responsibility or liability for losses beyond their investment, limited partnerships also have one or more general partners. Limited liability partnerships are the newest form of business organization and one of the fastest growing. National statistics show that from 1994 to 1996, new LLP registrations grew by a factor of five. Conrad Ciccotello summarizes why LLP's were formed: "The LLP originated in August 1991 in Texas in response to the collapse of the real estate and energy markets.…

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