The general partner normally provides only a small portion of the equity capital. In return for organizing and managing the partnership, the general partner normally gets an initial lump-sum management fee and a continuing management fee based upon the gross income of the business. The joint venture is another variation of the partnership, usually more narrow in function and duration than a partnership. The law of partnership applies to joint ventures. The primary purpose of this form or organization is to share the risks and profits of a specific business undertaking.
Corporations issue ownership shares in the form of common stock.
The owners of this stock vote to elect a board of directors who manage the corporation for the shareholders. The corporation is not dissolved on the death of the owner. A corporation is a separate legal entity that can own property, sue and be sued, contract to buy and sell, and be fined - all in its own name. The owners usually cannot be made to pay any debts of the corporation. Their liability is limited to the amount of money they have paid or promised to pay into the corporation.