Tourism As A Trade Flashcards
Forms of business organization
- Sole proprietorship
- Partnership
- Corporation
The owner is in the command in his whole business
Sole proprietorship
2 or more bind themselves to contribute money or property to a common fund with the intention of dividing profits among themselves.
Partnership
Forms of partnership
- General Partnership
- Limited Partnership
- Limited Liability Partnership
All other partners manage the business and are personally liable for their debts.
General partnership
Certain limited partners relinquish their ability to manage the business in exchange for limited liability for the partnership debt.
Limited partnership
All partners have limited liability
Limited liability partnership
Types of partners
- General partners
- Limited partners
- Silent partners
They have an obligation of strict liability to third parties injured by the partnership
General partners
Their liabilities are limited to their investments
Limited partners
They share in the profit and losses but they are not involved in the decision making process and are not known to the public
Silent partners
All partners must have confidence and trust in one another.
Partnerships is FIDUCIARY
You have the right to choose your partner taking into consideration: honesty, integrity, trust, and confidence.
DELECTUS PERSONAE
It is defined as an artificial being created by operation of law, having the right of succession and powers, attributes and properties expressly authorized by law or incident to its existence.
Corporation
Classifications of Corporation as to the Place of Incorporation (2)
- Domestic corporation
- Foreign corporation
