Chapter 3 Flashcards
1
Q
What is legal or juristic personality
A
Not changed by its members. Allows for continuity. Business could last forever . Members not liable for debt or obligations of the juristic persons
2
Q
Sole proprietorship
A
Owned and managed by 1 person.
Very popular cos it’s easy and cheap
3
Q
Advantages of sole proprietorship
A
Simple Cheap Owner has total authority No special legal restrictions Easy to discontinu3
4
Q
Disadvantages of sole proprietorship
A
Owner is personally liable without limitations
Limited diversity in skills
Lack of continuity
Limited access to capital
5
Q
The partnership
A
Similar to sole proprietorship
A contractual relationship between 2 or more persons.
6
Q
The close corporation
A
Charactistics of partnership and company
Mayhave one or more members but not more than 10
