Each general partner is personally liable for the debts and losses of the partnership. Profits of the partnership are taxed once, as part of the partners incomes at the applicable personal tax rates. General Corporation A cooperative is a type of corporation. For our purposes, corporations other than cooperatives are referred to here as general corporations. They range in size from small businesses owned by one person to large multinational organizations owned by thousands of people.
Equity capital is raised by selling shares to investors.
Ownership of a general corporation occurs by purchasing shares of the corporation s stock. Owners are known as shareholders. The amount of votes that each shareholder receives is tied to the number and class of stock that he or she owns. In return for providing equity to the corporation, shareholders are entitled to receive any dividends that the corporation may distribute. The amount of dividends each shareholder receives is based on the number and class of shares that he or she owns.