Business Structures Flashcards
What does RUPA stand for?
Revised Uniform Partnership Act 1994
What does fiduciary duty mean?
the highest form of duty in a business relationship.
The order of which debts need to be paid when a business ends.
- non-partner creditors
- Partner creditors
- partner capital contributors
- Profits
What is a domestic corporation?
one that is incorporated in the same state that it does business in
What is a foreign corporation?
one that is incorporated in one state but then does business in other states or countries
What is an alien corporation?
does business in one country, as well as another country.
What does it mean for a for-profit corporation to be closely held?
50 or fewer shareholders, not publicly traded.
C-Corp
no limit to shareholders, most corporations are this.
S-Corp
type of closely-held corporation that is limited to 100 shareholders or less but gets many tax advantages.
B-Corp
requires a corporation to take into account the impact of its decisions on a number of stakeholders while still remaining a for-profit corporation
when forming a corporation, who does the company file articles to?
secretary of state
what is the main advantage of a corporation?
ability to get financing
4 elements of an enforceable contract
Agreement, Consideration, Capacity, Legality
bilateral contract
promise for a promise
unilateral contract
acceptance doesn’t happen until performance.
