Word of the day

Question 1

Fiduciary

Answer 1

person who holds a legal or ethical relationship of trust with one or more other parties

Question 2

Ratification

Answer 2

act of giving formal consent to a treaty, agreement, contract, or other legal instrument

Question 3

Vicarious Liability

Answer 3

When a principal is responsible got the actionable conduct of their agent based on the relationship between the 2 parties

Question 4

Duty of Loyalty

Answer 4

A persons responsibility to act in the best interests of another

Question 5

Agency

Answer 5

A consentual relationship where one party, the principal, grants authority for another party, the agent, to act on behalf of andunder the control of the principal to deal with a 3rd party

Question 6

Partnership Agreement

Answer 6

the agreement among partners of a partnership governing their relative rights and obligations among one another with respect to the partnership

Question 7

Capital Account

Answer 7

general ledger account that is used to record the owners contributed capital and retained earnings- the cumulative amount of a companies earnings since it was formed minus that cumulative dividens paid to the shareholders

Question 8

Indemnification

Answer 8

the broad concept of one party
compensating another for losses, damages, or liabilities, usually due to third-party claims. It’s an agreement that safeguards one party against
the financial impacts of specific actions or events

Question 9

Common Law

Answer 9

law that is derived from judicial decisions instead of from statutes or regulations

Question 10

Bankrupcy

Answer 10

In the US, this is a federal court process conducted under the provisions of ch 7, 11, 12, 13, or 15 of the bankrupcy code. The process may result in liquidation or reorganization

Question 11

Certificate of Limited Partnership

Answer 11

A certificate filed with a state office or agency for the purpose of forming a limited partnership under the laws of that state

Question 12

Pass through taxation

Answer 12

A type of taxation, generally applicable to partnerships and LLCs, whereby the business entity is not taxed on its income. but, instead the income is “passed through” to its stakeholders. Partnerships are not subject to entity-level taxation ____(evenly?) is passed through the partnership directly to its partners, who are taxed individually.

Question 13

Bylaws

Answer 13

one of the primary governing documents (second to the certificate of incorperation) for a corporation, in which most of the rules for the day to day operations of a corperation are set forth. Bylaws typically are selected how Board members may be appointed, how Board meetings and stockholder meetings may be called/conducted

Question 14

Enviromental, social, and governance/ ESG

Answer 14

the three factors that are considered by and increasing number of businesses, investors, and other stakeholders (alongside more traditional factos) in a variety of decision-making.
- Examples of ESG considerstions include a company’s sustainablity policies, approach to supply chains and ensuring supply chain resilience (including modern slavery issues), labor policies, and governance issues (such as board diversity, reporting systems and processes and good Corperate Governance).