Master Limited Partnership Master (LPM) - Consists of having a general partner who is responsible for running the partnership, and having individual investors who are limited partners. Looks much like a corporation, but is taxed like a partnership and thus avoids the corporate income tax. Limited Liability Partnership (LLC) - Domestic LLCs may be managed by one or more managers or one or more members. Members are only responsible for losses, up to the amount they invest and those they supervise. A California LLC generally offers liability protection similar to that of a corporation but is taxed based on the number of members. OTHERS FORMS OF PARTNERSHIPS Partnerships LG2 5-14
EVEN the BIG GUYS MAKE MISTAKES Advantages of Corporations LG3 5-25 COMPANYBAD MOVE Apple MapsLaunched in September 2013, was a disaster, giving terrible directions, missing railway stations, and Dublin Ireland was given a new airport. AtariAmount of Surplus from a bad game was so big, that it had to be buried in a New Mexican landfill. BlockbusterPassed on a partnership with Netflix, and went bankrupt. HostessCEO cuts everyone’s salary, but his own, and goes bankrupt. Coca ColaNew Coca only lasted 77 days due to 1500 complaint calls a day. Shoebox Cards Stuff like, don't mention breasts on cards for 13-year-old girls. And don't imply that big breasts will get you diamonds from rich boyfriends. Denny’s Obamacare Surcharge John Metz, a 40-store manager, promised to add a 5% surcharge to customer bills to help pay for Obamacare. He even suggested customers reduce tips to their servers in order to pay surcharge. This created a mess for Denny's and Metz. Customer backlash was intense, and other franchisees not involved with issue reported sales drop. Metz apologized regretting his statement after being spoken with by Denny’s CEO.
OLDIES BUT GOODIES Individuals Can Inorporate LG3 5-27 American’s Oldest Corporations COMPANYYEAR STARTED INDUSTRY Harvard Corporation1636Education J.E. Rhoads & Sons1702Conveyor Belts Covenant Life Ins.1717Insurance Philadelphia Insurance 1752Insurance Dexter1767Adhesives & Coatings D. Landreth Seeds1784Seeds Bank of New York1784Banking