Ch31 Introduction to Business Organization Flashcards
The most significant disadvantage of the sole proprietorship form of business is this. (Two words)
Unlimited Liability
The sole proprietorship form of business has how many major advantages?
Two
This is acronym for the form that is on page 374. This allows the entity to have its own number.
EIN
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.
Partnership
This type of partner is usually unknown to the public as a partner and usually takes no part in management.
Dormant
This resembles a partnership, but shares of stock, as in a corporation, indicate ownership.
Joint Stock Company
The ownership of these shares may be ______________ without dissolving the association.
Transferred
Unlimited personal liability, instability, and disharmony are some of these in a partnership.
Disadvantages
This partnership is when two or more people voluntarily contract to pool their capital and skill to conduct a business.
Ordinary
This word is about the consent of all members in written form to end the LLC.
Dissolution
This type of partner is active who attempts to conceal the fact from the public.
Secret
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.
LLC
Labor, skills, money are just a few of these of having a partnership.
Advantages
This is the owner of a sole proprietorship.
Proprietor
This describes the rights and duties of members and managers under an LLC.
Operating Agreement
Cengage Learning: Association of people created by law into an entity.
Corporation
Cengage Learning: Partner unknown to public with no part in management.
Dormant or Sleeping Partner
Cengage Learning: Law requiring operator of business under assumed name to register with state.
Fictitious Name Registration Statutes
Cengage Learning: Partner actively and openly engaged in business.
General Partner
Cengage Learning: Business relationship similar to partnership, except existing for single transaction only.
Joint Venture
Cengage Learning: Entity that issues shares of stock, but investors have unlimited liability
Joint-Stock Company
Cengage Learning: Capital contribution is maximum loss.
Limited Liability
Cengage Learning: Partnership–type organization but with limited liability.
Limited Liability Company
Cengage Learning: Registered partnership whose members run business but have limited liability.
Limited Liability Partnership
Cengage Learning: Partner who takes no active part in management and whom the public knows as a partner.
Limited Partner
Cengage Learning: Partnership with partner whose liability is limited to capital contribution.
Limited Partnership
Cengage Learning: Person who pretends to be a partner
Nominal Partner
Cengage Learning: One devoted to professional services
Nontrading Partnership
Cengage Learning: Partnership with no limitation on rights and duties of partners.
Ordinary or General Partnership
Cengage Learning: Member of a partnership
Partners
Cengage Learning: Association of two or more people to carry on business for profit.
Partnership
Cengage Learning: Ignoring the corporate entity
Piercing the Corporate Veil
Cengage Learning: Owner of sole proprietorship
Proprietor
Cengage Learning: Partner active but unknown to public.
Secret Partner
Cengage Learning: Partner who takes no part in firm.
Silent Partner
Cengage Learning: Business owned and carried on by one person.
Sole Proprietorship
Cengage Learning: One engaged in buying and selling.
Trading Partnership
Cengage Learning: Business debts payable from personal assets.
Unlimited Liability
- A sole proprietorship has one owner but can have one or more employees.
True
- The partnership is the simplest and most common form of business.
False
- By definition, a partnership must be comprised of at least four people.
False
- An ordinary partnership has no limitation on the rights and duties of the partners.
True
- A minor may not be a partner.
False
- A corporation may be created by an informal agreement by private individuals.
False
- A corporation can sue and be sued.
True
- A partnership in which at least one partner’s liability is fixed at the amount of the capital contribution is called a/n ________ partnership.
Limited
- A business organization similar to the partnership but without the disadvantage of unlimited liability is called a ________.
Limited Liability Company
- A partnership devoted to professional services is called a ________.
Nontrading Partnership
- A partner who takes no part in the firm is called a ________ partner.
Silent
- A business relationship in which two or more people combine their labor or property for a single undertaking is called a ________.
Joint Venture
- An association of people created by law into a separate legal entity is called a ________.
Corporation
- Courts will sometimes ignore the corporate entity protection.
Piercing the corporate veil
