Chap 19 Flashcards
Articles of Partnership
“partnership agreement”
Dissolution
the legal term for termination of a partnership
General Partner
a member of a partnership who has unlimited liability
Limited Partner
a member of a partnership whose liability is limited to his or her investment in a partnership
Limited Partnership
a partnership having one or more limited partners
Liquidation
termination of a business by distributing all assets and discontinuing the business
Memorandum Entry
an informational entry in the general ledger
Mutual Agency
the characteristic of a partnership by which each partner is empowered to act as an agent of the partnership, binding the firm by his or her acts
Partnership
a business entity owned by two or more people who carry on business for profit and who are legally responsible for the debts and taxes of the business
Partnership Agreement
a legal contract forming a partnership and specifying certain details of operation
Statement of Partners’ Equities
a financial statement prepared to summaries the changes in the partners’ capital accounts during an accounting period
Unlimited Liability
the implication that a creditor can look to all partners’ personal assets as well as the assets of the partnership for payment of the firm’s debts
