1
Professional Memo
Jennifer Moore
Southern New Hampshire University
BUS Law II
November 13, 2022
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Professional Memo
TO: Fred and Sally
FROM: Jennifer Moore / Lawyer
DATE: November 13, 2022
SUBJECT: Issues and Facts of Business Law
Business Entities
The primary business entities include sole proprietorships, partnerships, limited liability
companies, as well as corporations. Each form of corporate entity possesses its own set of
distinguishing qualities. A sole proprietorship is a business entity in which a single person
acts as both owner and manager. The sole proprietor manages all aspects of the company and
takes full responsibility for any financial obligations. This makes the sole proprietor
personally liable for the company's debts in the event of the company's insolvency. A
partnership is a business that is owned and managed by more than one person. There are two
types of partnerships: general and limited. All partners in a general partnership are jointly and
severally responsible for the partnership's obligations. This implies that in the event of the
partnership's insolvency, the onus of payment for the obligations will fall on each individual
member (Beatty et al., 2018). A limited partnership consists of at least one general partner
who assumes responsibility for the firm's obligations and liabilities and one or more limited
partners who do not. Limited liability firms7are statutory bodies that provide limited liability
protection for its owners. This protects the owners from having their own assets seized to pay
off the company's debts. An LLC might have one member or several. The lone "member" of a
