Full Semester Flashcards

1
Q

Partnership

A

Unincorporated association of two or more persons to pursue a business for profit as co-owners

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2
Q

Partnership Contract or Articles of Partnership

A

Agreement among partners that sets terms under which the affairs of the partnership are conducted.

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3
Q

Mutual Agency

A

Legal relationship among partners whereby each partner is an agent of the partnership and is able to bind the partnership to contracts within the scope of the partnership’s business.

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4
Q

Unlimited Liability

A

Legal relationship among general partners that makes each of them responsible for partnership debts if the other partners are unable to pay their shares.

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5
Q

Limited Partnership

A

Partnership that has two classes of partners, limited partners and general partners.

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6
Q

General Partner

A

Partner who assumes unlimited liability for the debts of the partnership; responsible for partner management.

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7
Q

Limited Partner

A

Partners who have no personal liability for partnership debts beyond the amounts they invested in the partnership.

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8
Q

Limited Liability Partnership

A

Partnership in which a partner is not personally liable for malpractice or negligence unless that partner is responsible for providing the service that resulted in the claim.

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9
Q

S Corporations

A

Corporation that meets special tax qualifications so as to be treated like a partnership for income tax purposes and therefore is subject to income taxes.

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10
Q

C Corporations

A

Corporation that does not qualify nor elect to be treated as a proprietorship or partnership for income tax purposes and therefore is subject to income taxes.

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11
Q

Limited Liability Company

A

Organization form that combines select features of a corporation and a limited partnership; provides limited liability to it’s members (owners), is free of business tax, and allows members to actively participate in management.

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12
Q

Statement of Partner’s Equity

A

Financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners withdrawals and the partners ending capital balances.

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13
Q

Corporation

A

Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.

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14
Q

Organization Expenses

A

Costs such as legal fees and promoter fees to bring an entity into existence.

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15
Q

Proxy

A

Legal document giving a stockholder’s agent the power to exercise the stockholder’s voting rights.

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16
Q

Common Stock

A

Corporations basic ownership share

17
Q

Preemptive Right

A

Stockholder’s right to maintain their proportionate interest in a corporation with any additional shares issued.

18
Q

Capital Stock

A

General term referring to a corporations stock used in obtaining capital (owner financing).

19
Q

Authorized Stock

A

Total amount of stock that a corporation’s charter authorizes it to issue.

20
Q

Market Value Per Share

A

Price at which stock is bought or sold.

21
Q

Par Value Stock

A

Class of stock assigned a par value by the corporate charter.