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Corporate Law > Soleproprietors and Partnerships > Flashcards

Soleproprietors and Partnerships Flashcards

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1
Q

Name the three kinds of Partnerships

A

General Partnerships, Limited Partnerships, Limited Liability Partnerships

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2
Q

Advantages for Soleproprietor

A

easy setup, inexpensive, few licensing/reg requirements, complete control of business, tax benefits (business losses can be applied to personal)

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3
Q

Disadvantages of Soleproprietor

A

unlimited liability, limited management expertise, limited ability to raise money tax
- income of business added to personal tax

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4
Q

A Soleproprietor must file a ____ if they are not using their own name

A

Declaration of Trade Name

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5
Q

A Soleproprietor has no separate ____ ____ (The owner and the business are one)

A

legal entity

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6
Q

2 or more people in business to make a profit together

A

Partnership

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7
Q

What partnership has partners that act as agents

A

General Partnership

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8
Q

Fiduciary Duty

A

act with utmost good faith, honesty, integrity, and can’t make secret profit

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9
Q

What kind of partnership must file a Declaration of Trade Name? (if not using their names)

A

General Partnership

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10
Q

General partnerships are _____ liable for their employees

A

Vicariously

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11
Q

What partnership is jointly and severally liable?

A

General Partnerships

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12
Q

What kind of liability does a general partnership have?

A

Unlimited Liability

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13
Q

Advantages to a General Partnership

A

share work load, more expertise, more credit and capital, tax benefit (business losses can be applied to personal)

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14
Q

Disadvantages to a General Partnership

A

unlimited liability, partners share equal losses of the partnership (business fail=personal and partnership assets are at risk)

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15
Q

Limited Partners means

A

the are like a shareholder, investing in the business but not allowed to work in the business

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16
Q

Main difference between general and limited partnerships

A

limited has partners who only invest in the business who are not allowed decisions nor their names on the business

17
Q

By having these partners (like shareholders) in the business, it allowed them to get more money

A

Limited Partners

18
Q

The name of business cannot include any _____ partners names

A

Limited

19
Q

A limited partnership must file a _____ form to form

A

Certificate

20
Q

In a limited partnership one partner must have ____

A

Unlimited Liability

21
Q

Limited partners are liable for what?

A

The amount that they have personally invested

22
Q

Advantages for a Limited Partnership

A

They have limited liability up to the amount they have invested, more credit and capital, others to share the work load, more expertise

23
Q

Disadvantages of Limited Partnerships

A

general partner(s) have unlimited liability and liable for limited partners, limited partners have no control in business

24
Q

LP

A

Limited Partnership

25
Q

LLP

A

Limited Liability Partnerships

26
Q

Who are eligible for a LLP

A

Lawyers, Doctors, Dentists, Accountants

27
Q

What must a lawyer have in order to work in an LLP

A

Liability Insurance

28
Q

______ Act governs a LLP

A

Partnership

29
Q

These types of partners are not liable for their partners or employees

A

Limited Liability Partnership

30
Q

This partnership must apply to the registrar(Service AB) with details of the partnership

A

Limited Liability Partnership

31
Q

What partnership needs authorization of their professions governing body

A

Limited Liability Partnership

32
Q

Advantages to a LLP

A

limited liability (liability insurance), more expertise, more credit and capital, Fiduciary Duty

33
Q

Disadvantage to LLP

A

not easy to set up (register with Serivce AB, liability insurance, only eligible for certain professions

Corporate Law (1 decks)

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