Chapter 36 Flashcards
What are the FIRST requirements for all business forms?
Name, licensing, state tax registration, health and environmental permits.
What are the SECOND requirements for all business forms?
Zoning and building codes, import/export regulations, adequate insurance coverage.
When do businesses make employees sign non-compete clauses?
Sign at beginning or offer consideration.
What do banks want for businesses seeking a loan?
Banks want security, control, history.
What is a sole proprietorship?
Simplest business. Single owner businesses are usually sole proprietorship unless affirmatively adopted.
What is the liability of sole proprietorships?
Unlimited personal liability for all losses or liabilities.
What is the duration of sole proprietorships?
Business dissolved when owner dies.
What are the limited funds of a sole proprietorships?
Personal funds and any loans that he can obtain for the business, no outside money.
What is a partnership?
Express or implied, share of profit and losses, joint ownership, equal control. Joint and several liable.
How is a franchise terminated?
Duration determined by parties. Grounds for termination set by franchise, contract must have notice requirements and good faith and fair dealing.
