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Business Law > Ch31 Introduction to Business Organization > Flashcards

Ch31 Introduction to Business Organization Flashcards

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1
Q

The most significant disadvantage of the sole proprietorship form of business is this. (Two words)

A

Unlimited Liability

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2
Q

The sole proprietorship form of business has how many major advantages?

A

Two

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3
Q

This is acronym for the form that is on page 374. This allows the entity to have its own number.

A

EIN

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4
Q

This is a voluntary association of two or more people who have combined their money, property, or labor and skill, or a combination of these…for the purpose of some lawful business.

A

Partnership

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5
Q

This type of partner is usually unknown to the public as a partner and usually takes no part in management.

A

Dormant

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6
Q

This resembles a partnership, but shares of stock, as in a corporation, indicate ownership.

A

Joint Stock Company

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7
Q

The ownership of these shares may be ______________ without dissolving the association.

A

Transferred

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8
Q

Unlimited personal liability, instability, and disharmony are some of these in a partnership.

A

Disadvantages

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9
Q

This partnership is when two or more people voluntarily contract to pool their capital and skill to conduct a business.

A

Ordinary

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10
Q

This word is about the consent of all members in written form to end the LLC.

A

Dissolution

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11
Q

This type of partner is active who attempts to conceal the fact from the public.

A

Secret

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12
Q

This acronym is a form of business that allows the flexibility of being taxed as a partnership, corporation, or sole proprietor. It also deflects personal liability.

A

LLC

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13
Q

Labor, skills, money are just a few of these of having a partnership.

A

Advantages

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14
Q

This is the owner of a sole proprietorship.

A

Proprietor

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15
Q

This describes the rights and duties of members and managers under an LLC.

A

Operating Agreement

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16
Q

Cengage Learning: Association of people created by law into an entity.

A

Corporation

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17
Q

Cengage Learning: Partner unknown to public with no part in management.

A

Dormant or Sleeping Partner

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18
Q

Cengage Learning: Law requiring operator of business under assumed name to register with state.

A

Fictitious Name Registration Statutes

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19
Q

Cengage Learning: Partner actively and openly engaged in business.

A

General Partner

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20
Q

Cengage Learning: Business relationship similar to partnership, except existing for single transaction only.

A

Joint Venture

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21
Q

Cengage Learning: Entity that issues shares of stock, but investors have unlimited liability

A

Joint-Stock Company

22
Q

Cengage Learning: Capital contribution is maximum loss.

A

Limited Liability

23
Q

Cengage Learning: Partnership–type organization but with limited liability.

A

Limited Liability Company

24
Q

Cengage Learning: Registered partnership whose members run business but have limited liability.

A

Limited Liability Partnership

25
Q

Cengage Learning: Partner who takes no active part in management and whom the public knows as a partner.

A

Limited Partner

26
Q

Cengage Learning: Partnership with partner whose liability is limited to capital contribution.

A

Limited Partnership

27
Q

Cengage Learning: Person who pretends to be a partner

A

Nominal Partner

28
Q

Cengage Learning: One devoted to professional services

A

Nontrading Partnership

29
Q

Cengage Learning: Partnership with no limitation on rights and duties of partners.

A

Ordinary or General Partnership

30
Q

Cengage Learning: Member of a partnership

A

Partners

31
Q

Cengage Learning: Association of two or more people to carry on business for profit.

A

Partnership

32
Q

Cengage Learning: Ignoring the corporate entity

A

Piercing the Corporate Veil

33
Q

Cengage Learning: Owner of sole proprietorship

A

Proprietor

34
Q

Cengage Learning: Partner active but unknown to public.

A

Secret Partner

35
Q

Cengage Learning: Partner who takes no part in firm.

A

Silent Partner

36
Q

Cengage Learning: Business owned and carried on by one person.

A

Sole Proprietorship

37
Q

Cengage Learning: One engaged in buying and selling.

A

Trading Partnership

38
Q

Cengage Learning: Business debts payable from personal assets.

A

Unlimited Liability

39
Q
  1. A sole proprietorship has one owner but can have one or more employees.
A

True

40
Q
  1. The partnership is the simplest and most common form of business.
A

False

41
Q
  1. By definition, a partnership must be comprised of at least four people.
A

False

42
Q
  1. An ordinary partnership has no limitation on the rights and duties of the partners.
A

True

43
Q
  1. A minor may not be a partner.
A

False

44
Q
  1. A corporation may be created by an informal agreement by private individuals.
A

False

45
Q
  1. A corporation can sue and be sued.
A

True

46
Q
  1. A partnership in which at least one partner’s liability is fixed at the amount of the capital contribution is called a/n ________ partnership.
A

Limited

47
Q
  1. A business organization similar to the partnership but without the disadvantage of unlimited liability is called a ________.
A

Limited Liability Company

48
Q
  1. A partnership devoted to professional services is called a ________.
A

Nontrading Partnership

49
Q
  1. A partner who takes no part in the firm is called a ________ partner.
A

Silent

50
Q
  1. A business relationship in which two or more people combine their labor or property for a single undertaking is called a ________.
A

Joint Venture

51
Q
  1. An association of people created by law into a separate legal entity is called a ________.
A

Corporation

52
Q
  1. Courts will sometimes ignore the corporate entity protection.
A

Piercing the corporate veil

Business Law (13 decks)

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