Ownership of real estate by business organizations Flashcards
A(n) ___ is a legal entity that exists independently of its members.
Business organization
Ownership by a(n) ___ makes it possible for many people to hold an interest in the same parcel of real estate
business organization
A(n) ___ is an association of two or more persons who carry on a business for profit as co-owners.
Partnership
In a(n) ___, all partners participate in the operation and management of the business and share full liability for business losses and obligations
General partnership
A(n) ___ consisits of one or more general partner as well as limited partners.
Limited partnership
Limited partners can only be held liable for business losses to the extent of their…
own investment
A(n) ___ partnership permits investors with small amounts of capital to participate in large real estate projects with a minimum of personal risk.
Limited
Illinois has adopted the federal Uniform Partnership Act, which permits real estate to be held…
in the partnership name
The ___ establishes the legality of the limited partnership entity and provides that realty may be held in the limited partnership’s name.
Uniform Limited Partnership Act
A legal entity created under the authority of the laws of the state from which it receives its charter
Corporation
A corporation is managed and operated by its ___.
Board of directors
The ___ sets forth the powers of the corporation, including its right to buy and sell real estate
Charter
Because a corporation is a legal entity, it can own real estate either ___ or as a(n) ___.
in severalty
or as a tenant in common
How long does a corporation continue to exist?
Until the corporation is formally dissolved
Individuals can participate or invest in a corporation by…
purchasing stock
Stocks are ___ property
personal
Do shareholders of stock in a corporation have direct ownership interest in real estate owned by a corporation? Why or why not?
No because stocks are personal property
A disadvantage of ___ ownership is that profits are subject to double taxation
corporation
A corporation must file an income tax return and pay tax on its ___.
profits
In a corporation, what happens with the portion of remaining profits after filing income taxes?
Distributed shareholders as dividends
Dividends are taxed as part of the ___ income
shareholders
An alterative form of business ownership that provides the benefit of a corporation as a legal entity buy avoids double taxation is called a(n) ___.
S corporation
In a(n) ___, only the shares of profits that are passed to shareholders are taxed.
S corporation
The profits of a(n) ___ are not taxed.
S corporation
