Forms of Business Ownership Flashcards
a single person or entity has exclusive rights and responsibilities to a property unlike joint ownership where multiple parties share interests.
ownership in severalty
a form of co-ownership where two or more individuals own a property, each with a distinct, undivided interest in the property, and can have unequal shares and dose not include the right of survivorship
tenancy in common
a form of property ownership where two or more individuals own property together with equal rights and responsibilities, including the “right of survivorship,” meaning the deceased owner’s share automatically transfers to the surviving owner(s
joint tenancy
a business structure where two or more individuals agree to share in the profits, losses, and management of a business, with each partner having unlimited personal liability for the business’s debts and obligations.
general partnership
a business structure with at least one general partner who manages the business and faces unlimited liability, and one or more limited partners who invest capital but have limited liability and no management role.
limited partnership
legal documents filed with a state government to formally establish a corporation, outlining its basic structure, purpose, and initial operational details, and are sometimes called a certificate of incorporation or charter.
articles of incorporation
a legal entity separate from its owners, established to conduct business or trade, and can own assets, hire employees, sign contracts, and exercise individual rights
corporation
the simplest form of business ownership, where a single individual owns and operates the business, with no legal distinction between the owner and the business,
Sole Proprietorship
groups of investors pooling their money in pursuit of a single investment goal, such as buying an office building
Syndicate
An investment is a security, as defined by the Federal Securities Act of 1933 if it is
An investment of money
A group enterprise
Intended to make a profit, and that profit is solely derived from the management effort of others
a temporary organization formed by two or more parties to invest in real estate (or other investments). Participants may be corporations, partnerships, LLCs, or other entities. The parties may hold title as joint tenants or tenants in common.
joint venture
are companies that own, and usually operate, income-producing real estate and generally own many types of commercial real estate, including multi-family, warehouses, and retail
Real estate investment trusts (REITs)
Purchases properties and makes money primarily from those properties’ rents
equity REIT
Invests in real estate debt, including mortgage-backed securities
mortgage REIT
To avoid the trust income tax, the trust must distribute ______ of ordinarily taxable income to the trust beneficiaries.
95%
imilar to other trusts except that it is formed specifically to hold real estate—real property is the only asset within the trust
LAND TRUST
TRUE OR FALSE: With a land trust, the person who establishes the trust (the trustor) can’t also be the beneficiary.
false
true or false: When the land trust term expires, the trustee must either extend the term or sell the real estate and provide the proceeds to the beneficiary.
true
what kinds of trusts will avoid probate
living trusts
Irrevocable Trusts
the right a person has to receive benefits from assets held by another party, often in the context of trusts, where the beneficiary has a future interest in the trust’s assets, potentially gaining access at a specific time or upon meeting certain conditions.
beneficiary’s interest
what is the diffrences in Subchapter C corporation Subchapter S corporation
C corp is taxed at the corporate level and shareholder level and S Corps are taxed only at the shareholder level
