operations of the business Three types of partnerships (1)general partnerships (2)limited partnerships (3)master limited partnerships Some terms:a general partner,a limited mited liability Major elements in a partnership agreement Advantages: Profit Potential;Incentives for Talented Employees,Shared Management Legal Advantage:Financial Advantage:Longer Survival Disadvantages Unlimited Liability,Interpersona Problems. Management Difficulties Difficult to Terminate;Life Span Corporation Definition A corporation is a body formed and authorized by law to act as a single person although constituted by one or more owed with various rightsand duties To form a corporation,at least three incorporators /shareholders/stockholders are needed How to Incorporate 1.Consult an experienced lawyer; 2.Select a location in which to incorporate: 3.File articles of incorporation and Home Assignments: Review the questions (if any)listed in the lecture outline Teaching Methods Lecturing.presentation,discussion,teamwork and case study with the aid of multi-media 9 operations of the business Three types of partnerships: (1) general partnerships (2) limited partnerships (3) master limited partnerships Some terms: a general partner, a limited partner, limited liability, unlimited liability How to form a partnership Major elements in a partnership agreement: Advantages: Profit Potential; Incentives for Talented Employees; Shared Management Legal Advantage; Financial Advantage; Longer Survival Disadvantages: Unlimited Liability; Interpersonal Problems; Management Difficulties Difficult to Terminate; Life Span Corporation Definition: A corporation is a body formed and authorized by law to act as a single person although constituted by one or more persons and legally endowed with various rights and duties. To form a corporation, at least three incorporators /shareholders/ stockholders are needed How to Incorporate 1. Consult an experienced lawyer; 2. Select a location in which to incorporate; 3. File articles of incorporation and corporate by laws. Tax Problems Home Assignments: Review the questions (if any) listed in the lecture outline. Teaching Methods: Lecturing, presentation, discussion, teamwork and case study with the aid of multi-media