Business Structure (selection of a business entity) Advantages/Disadvantages Flashcards
A C Corporation Shareholders
liabilities are limited to their investment in the company
Can have nonresident shareholders
Joint ventures are similar to partnerships although
their duration are smaller because they are created for specific purposes
A general partner
may be a secured partner in a limited partnership
Must have 2 or more partners
Ultra Vires
forbids an act by a corporation that is beyond the scope of its powers as specified in its articles of incorporation and under state law
Characteristics of Sub-chapter S
100 or fewer shareholders
One class of stock
Unanimous consent
Shareholders must be individuals and not other forms of business
Limited partners vs General partners
Limited partners are limited to their investment
General partners have unlimited liability
