Ch31 Introduction to Business Organization Flashcards Preview

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Flashcards in Ch31 Introduction to Business Organization Deck (52):
1

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

Unlimited Liability

2

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

Two

3

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

EIN

4

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.

Partnership

5

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

Dormant

6

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

Joint Stock Company

7

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

Transferred

8

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

Disadvantages

9

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

Ordinary

10

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

Dissolution

11

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

Secret

12

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.

LLC

13

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

Advantages

14

This is the owner of a sole proprietorship.

Proprietor

15

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

Operating Agreement

16

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

Corporation

17

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

Dormant or Sleeping Partner

18

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

Fictitious Name Registration Statutes

19

Cengage Learning: Partner actively and openly engaged in business.

General Partner

20

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

Joint Venture

21

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

Joint-Stock Company

22

Cengage Learning: Capital contribution is maximum loss.

Limited Liability

23

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

Limited Liability Company

24

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

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