Legal Terms: Chapter Seven - Business and Consumer Law Flashcards
Sole Proprietorship
Business that is owned and operated by an individual and that is not a legal entity seperate from the owner
Fiduciary Duty
In the context of a partnership, the responsibility to act carefully and reasonably in the best interest of the firm..
General Partnership
Business structure in which two or more persons carry on business in common with a view to profit.
Limited Partnership
Partnership structure involving at least one general partner, who operates the partnership and is liable for any partnership debts, and at least one limited partner, who invests in the partnership but does not operate it or take part in managing its business and is not personally liable for its debts and obligations.
Limited Liability Partnership
Partnership structure used by certain professions in Canada (accountants and lawyers) whereby partners are not liable for the professional negligence of other partners
Corporation
Company or group of people authorized by statute to act as a single entity (legally a person) and recognized as such in law
Negotiable Instrument
A document that promises the payment of a specific amount of money to the payee, on demand or at a set time, and that can be transferred to a third party.
Builders’ (or Construction) Lien
Charge against land that builders use to secure amounts owed them for work done on landowners’ property.
Three most common business structures in Canada
Sole proprietorship
Partnership
Corporation
Types of Partnership
General Partnership
Limited Partnership
Limited Liability Partnership
