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Essay / Mini Case Study - 722
On the other hand, to align their interests with those of the shareholders, a remuneration package can be used. For example, the interests of managers and shareholders could be aligned by establishing bonuses, benefits, and stock options for managers that are directly linked to the extent to which their decisions align with shareholder interests ( Brigham and Houston, 2013). A sole proprietorship is a form of business owned by a single person in which he or she retains title to the business's assets and is generally responsible for liabilities arising from the limitation. A partnership is a relationship between two or more people joining together as co-owners to operate a business for the purpose of making a profit. There are two forms of partnerships: the general partnership in which each partner is fully responsible for the debts incurred by the entity; and a limited partnership in which at least one partner has limited liability, limited to the individual's capital contribution to the partnership.