Vocabulary
Revenue
income generated from normal business operations
define agency:
an agency relationship exists between employer and employee, corporation and officer, client and lawyer, and partnership, and general partner
define partnership
a partnership is an association of two or more persons to carry on as co-owners of a business for profit
formation of LLC:
filing articles of organization with the designated state office, usually the Secretary of State
who directed Zodiac?
David Fincher
Expenses
costs incurred in the process of earning revenue
the agency relationship is created between_____parties and includes three elements which are:
-two
-mutual assent, control, acting on behalf of a principal
formation:
requires no written agreement or governmental action; the association must be voluntary but subjective intent is not required
pass-through taxing
the entity itself pays no tax; instead, the individual partners pay the tax
who directed Little Women (2019)
Greta Gerwig
Management Strategy
planning and decision-making to achieve business goals
principal duties to agent
(1) reimbursement/ indemnity to the agent for any promised payments and payments the agent makes within the scope of actual authority and when the agent suffers a loss that fairly should be borne by the principal in light of the relationship
(2) deal with agent fairly and in good faith
(3) the principal should also generally cooperate with the agent and unreasonably interfere with the agent's performance of his duties and her duties
liability:
joint and several
true or false: an LLC may be formed by one person only
true
who directed the shape of water?
Guillermo del Toro
shareholders:
board of directors:
officers:
shareholders: ownership
board of directors: selected by shareholders, compensated through shares of stock, boss of officers
officers: day-to-day management
agent's duties to principal
agents owe a fiduciary duty to the principal, which includes duties of care and loyalty which involve the agent not competing, acting adversely, take a biz opportunity that belongs to principal or abuse position to earn unauthorized side profits
finances:
equal profit sharing and loss allocation
what is the main advantage of a corporation
the limited liability given to shareholders
who directed Jaws
Steven Spielberg
Corporate Purpose Debate
what are the five bases by which a principal can incur contract liability
(1) actual authority
(2) apparent authority
(3) undisclosed principal liability
(4) ratification
(5) estoppel
limited partnership
a partnership with one or more general partners and one or more limited partners
derivative lawsuits
shareholder brings suit on behalf of corporation against the corporation and its managers
who directed Home alone?
Chris Columbus