The following answer assumes that a function $f(x)$ defined in a certain deleted neighborhood of $x = a$ has the following five options:
- $f(x) \to L$ where $L$ is a real number as $x \to a$. This is what I mean when I say that $\lim_{x \to a}f(x)$ exists.
- $f(x) \to \infty$ as $x \to a$.
- $f(x) \to -\infty$ as $x \to a$.
- $f(x)$ oscillates finitely as $x \to a$.
- $f(x)$ oscillates infinitely as $x \to a$.
Limit laws related to "algebra of limits" are normally presented in the following fashion:
If $\lim_{x \to a}f(x), \lim_{x \to a}g(x)$ exist then
- $\lim_{x \to a}\{f(x) \pm g(x)\} = \lim_{x \to a}f(x) \pm \lim_{x \to a}g(x)$
- $\lim_{x \to a}f(x)g(x) = \lim_{x \to a}f(x) \cdot \lim_{x \to a}g(x)$
- $\lim_{x \to a}\frac{f(x)}{g(x)} = \dfrac{\lim_{x \to a}f(x)}{\lim_{x \to a}g(x)}$ provided that $\lim_{x \to a}g(x) \neq 0$
Out of these the first law can be easily modified so that the existence of only one of the limits $\lim_{x \to a}f(x), \lim_{x \to a}g(x)$ is required. Thus we have the following result:
If $\lim_{x \to a}f(x)$ exists the nature of $\lim_{x \to a}\{f(x) \pm g(x)\}$ is same as the nature of $\lim_{x \to a}g(x)$. This means that
- if $\lim_{x \to a}g(x)$ exists then $\lim_{x \to a}\{f(x) \pm g(x)\}$ also exists and $\lim_{x \to a}\{f(x) \pm g(x)\} = \lim_{x \to a}f(x) \pm \lim_{x \to a}g(x)$
- if $\lim_{x \to a}g(x)$ is $\pm \infty$ then $\lim_{x \to a}\{f(x) \pm g(x)\}$ is also $\pm \infty$.
- if $g(x)$ oscillates finitely (or infinitely) then $f(x) \pm g(x)$ also oscillates finitely (or infinitely).
The laws relating to product and quotient of $f(x), g(x)$ can also be extended in a similar fashion where we require the existence of the limit of only one of the functions $f(x), g(x)$.
However in case of products is it important that the limit of one of the functions (say $f(x)$) must be non-zero and then the behavior of the product is same as the behavior of the other function (namely $g(x)$).
The case of quotients is bit difficult to handle and it is better to think of $f(x)/g(x)$ as $f(x)\times (1/g(x))$ and formulate the rules for $1/g(x)$ and use the laws of products mentioned above. For $1/g(x)$ the idea is simple. If $g(x) \to \pm\infty$ then $1/g(x) \to 0$. If $g(x) \to 0$ and $g(x)$ is positive (or negative) then $1/g(x) \to \infty$ (or $1/g(x) \to -\infty$). If $g(x) \to L \neq 0$ then $1/g(x) \to 1/L$. In other cases $1/g(x)$ oscillates.
Note that these rules suffice to handle all cases except the case of quotients when both the functions tend to $0$ or both of them tend to $\pm\infty$. This is where we need some more work (involving algebraic manipulation, standard limits, L'Hospital's Rule, Taylor series, or Squeeze Theorem).
Thus what you think intuitively is almost correct, however it is better not to abuse notation and start doing arithmetical operations with symbol $\infty$.