The basic characteristics of a general partnership include group ownership, personal liability, decentralized management and pass-through federal income taxation. Limited liability of owners for business matters is the primary benefit that is available under other business structures, but it is not characteristic of a general partnership.Know More
A general partnership is a group of two or more persons who agree to work together for profit. The partners are personally responsible for all business transactions, and any individual partner has the authority to make decisions on behalf of the entire partnership unless that authority is expressly limited by the partners.
Unlike a corporation that must follow complicated management regulations, partners can manage the enterprise informally or under terms the partners agree upon themselves and formalize in a partnership agreement. General partnerships also benefit from special tax treatment under federal law. The business is not required to file a federal income tax return; instead, it passes profits and losses through to the partners who report the amounts on their personal federal income tax returns and pay taxes on the amounts at their individual tax rates.Learn more about Corporations
The basic characteristics of a civilization include population centers, monumental architecture, written language, distinct art styles, division of labor, a system of administering territories and division of social classes.Full Answer >
A corporation is an independent legal formation owned by a group of shareholders. Due to its distinct legal status, a corporation is awarded several rights and responsibilities, including the ability to borrow and lend funds, hire and fire employees, pay taxes, own assets and enter into contracts.Full Answer >
The characteristics of a multinational corporation include its engagement in exporting, joint ventures, global strategic partnerships and the use of license agreements. It combines cheap labor and high-skill staffing strategies to create and maintain foreign affiliates with the goal of globalizing its business endeavors.Full Answer >
The main characteristics of a transnational company arise from the fact that it operates in two or more countries, including in its country of origin. Its business, such as sales, extraction or manufacturing, hence spans multiple countries. Its management system also focuses on a global or regional outlook.Full Answer >