Business Organizations Flashcards
Has two classes of partners
- general partners = managers
- limited partners = passive investors - no say in management of company
Limited partnership
Hired by an employer to provide a specific service
Independent contractor
Business entity in which two or more individuals jointly capitalize the business and share in its profits and losses
Partnership
A percentage of a corporation’s profits
Dividend
Represents someone else when dealing with a third party
Agent
Owner of a corporation
Shareholder/stockholder
Business entity set up according to a state’s statutes; allows owners to shield personal assets from business creditors
Corporation
Partnership formed for a single business transaction
Joint venture
Manage the day-to-day activities of a corporation
Officer
Principal is liable for the torts of an employee-agent
Respondeat superior
Rules and regulations that govern the day-to-day operations of a corporation
Bylaws
Hired to be under the direct control and supervision of the employer
Employee
Court can disregard the corporate structure and hold the shareholders personally liable for corporate debt
“Piercing the corporate veil”
Elected and removed by shareholder vote
Director
Business entity owned by one individual; owner’s personal assets are subject to the claims of business creditors
Sole proprietorship
