Sole Proprietorships/LLC
Partnerships
Partnerships
Corporations
MISC
100
___________ is a legal duty placed on a business owner that requires the owner to be responsible for all losses experienced by the business.
unlimited liability
100
Property contributed to the partnership when it is established is called ____________
partnership property
100
Every partnership must have at least one ___________ partner.
general
100
When towns, villages, cities, or school districts incorporate themselves, they are referred to as a _________________.
public corporation
100
______________is the easiest type of business to form.
sole proprietorship
200
If the owner of a sole proprietorship dies, who acquires the business as an entity?
No one - sole proprietorships only last as long as the business owner unless they have indicated legally (through a will) that the business will be left to a beneficiary.
200
A partnership that is formed simply by the way two or more people conduct their business together is called _____________.
partnership by proof of existence.
200
When a partnership ends, the firm's assets are first paid to ___________.
creditors then partners
200
A(n) ____________ corporation is formed for educational, religious, charitable, or social purposes
nonprofit
200
A business in which each partner is not responsible for the acts of the other partners.
Limited Liability Partnership (LLP)
300
An LLC must have a(n) ______________ in the state where it is organized.
statutory agent
300
When this happens, businesses are allowed to continue business even when a partner leaves the firm.
dissociation
300
A partner who takes no active role, but is known publicly and has unlimited liability is a _____________ partner.
silent
300
Courts will sometimes _____________________ and hold shareholders personally liable.
pierce the corporate veil
300
A business entity that combines the best features of a partnership and a corporation is called __________.
Limited Liability Company
400
One of the benefits on an LLC is that owners escape ____________.
double taxation
400
Before a partnership ends, there must be a ___________ period to close down business operations.
winding up
400
What act establishes most of partnership law?
Uniform Partnership Act (UPA)
400
A corporation that is incorporated in one state but does business in another is called a ______________.
foreign corporation.
400
Name the five types of partners that can exist in a partnership.
Silent, General, Secret, Dormant, Limited
500
Name one advantage and one disadvantage of forming a partnership.
Advantages: more capital and credit, burden of business is not on one person, partner does not have sole responsibility for losses. Disadvantages: share the profits, multiple opinions/voices, partners share liability, partners are responsible for each other's actions.
500
Co-ownership of all real and personal property included in the partnership is referred to as ________.
tenancy in partnership
500
This type of corporation avoids double taxation but has limitations on the number of shareholders allowed.
S Corporation
500
Name two advantages and two disadvantages of forming a corporation.
Advantages: more capital from selling shares, limited liability for shareholders, perpetual existence. Disadvantages: double taxation, heavy govt. regulation, original owners can lose ownership.
500
In a corporation, the shareholder’s liability is limited to what?
the amount of money paid for the shares in the corporation.
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