Ch31 Introduction to Business Organization Flashcards

(52 cards)

1
Q

The most significant disadvantage of the sole proprietorship form of business is this. (Two words)

A

Unlimited Liability

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2
Q

The sole proprietorship form of business has how many major advantages?

A

Two

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3
Q

This is acronym for the form that is on page 374. This allows the entity to have its own number.

A

EIN

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4
Q

This is a voluntary association of two or more people who have combined their money, property, or labor and skill, or a combination of these…for the purpose of some lawful business.

A

Partnership

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5
Q

This type of partner is usually unknown to the public as a partner and usually takes no part in management.

A

Dormant

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6
Q

This resembles a partnership, but shares of stock, as in a corporation, indicate ownership.

A

Joint Stock Company

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7
Q

The ownership of these shares may be ______________ without dissolving the association.

A

Transferred

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8
Q

Unlimited personal liability, instability, and disharmony are some of these in a partnership.

A

Disadvantages

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9
Q

This partnership is when two or more people voluntarily contract to pool their capital and skill to conduct a business.

A

Ordinary

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10
Q

This word is about the consent of all members in written form to end the LLC.

A

Dissolution

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11
Q

This type of partner is active who attempts to conceal the fact from the public.

A

Secret

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12
Q

This acronym is a form of business that allows the flexibility of being taxed as a partnership, corporation, or sole proprietor. It also deflects personal liability.

A

LLC

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13
Q

Labor, skills, money are just a few of these of having a partnership.

A

Advantages

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14
Q

This is the owner of a sole proprietorship.

A

Proprietor

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15
Q

This describes the rights and duties of members and managers under an LLC.

A

Operating Agreement

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16
Q

Cengage Learning: Association of people created by law into an entity.

A

Corporation

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17
Q

Cengage Learning: Partner unknown to public with no part in management.

A

Dormant or Sleeping Partner

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18
Q

Cengage Learning: Law requiring operator of business under assumed name to register with state.

A

Fictitious Name Registration Statutes

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19
Q

Cengage Learning: Partner actively and openly engaged in business.

A

General Partner

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20
Q

Cengage Learning: Business relationship similar to partnership, except existing for single transaction only.

A

Joint Venture

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21
Q

Cengage Learning: Entity that issues shares of stock, but investors have unlimited liability

A

Joint-Stock Company

22
Q

Cengage Learning: Capital contribution is maximum loss.

A

Limited Liability

23
Q

Cengage Learning: Partnership–type organization but with limited liability.

A

Limited Liability Company

24
Q

Cengage Learning: Registered partnership whose members run business but have limited liability.

A

Limited Liability Partnership

25
Cengage Learning: Partner who takes no active part in management and whom the public knows as a partner.
Limited Partner
26
Cengage Learning: Partnership with partner whose liability is limited to capital contribution.
Limited Partnership
27
Cengage Learning: Person who pretends to be a partner
Nominal Partner
28
Cengage Learning: One devoted to professional services
Nontrading Partnership
29
Cengage Learning: Partnership with no limitation on rights and duties of partners.
Ordinary or General Partnership
30
Cengage Learning: Member of a partnership
Partners
31
Cengage Learning: Association of two or more people to carry on business for profit.
Partnership
32
Cengage Learning: Ignoring the corporate entity
Piercing the Corporate Veil
33
Cengage Learning: Owner of sole proprietorship
Proprietor
34
Cengage Learning: Partner active but unknown to public.
Secret Partner
35
Cengage Learning: Partner who takes no part in firm.
Silent Partner
36
Cengage Learning: Business owned and carried on by one person.
Sole Proprietorship
37
Cengage Learning: One engaged in buying and selling.
Trading Partnership
38
Cengage Learning: Business debts payable from personal assets.
Unlimited Liability
39
1. A sole proprietorship has one owner but can have one or more employees.
True
40
2. The partnership is the simplest and most common form of business.
False
41
3. By definition, a partnership must be comprised of at least four people.
False
42
4. An ordinary partnership has no limitation on the rights and duties of the partners.
True
43
5. A minor may not be a partner.
False
44
6. A corporation may be created by an informal agreement by private individuals.
False
45
7. A corporation can sue and be sued.
True
46
8. A partnership in which at least one partner's liability is fixed at the amount of the capital contribution is called a/n ________ partnership.
Limited
47
9. A business organization similar to the partnership but without the disadvantage of unlimited liability is called a ________.
Limited Liability Company
48
10. A partnership devoted to professional services is called a ________.
Nontrading Partnership
49
11. A partner who takes no part in the firm is called a ________ partner.
Silent
50
12. A business relationship in which two or more people combine their labor or property for a single undertaking is called a ________.
Joint Venture
51
13. An association of people created by law into a separate legal entity is called a ________.
Corporation
52
14. Courts will sometimes ignore the corporate entity protection.
Piercing the corporate veil