MGMT final Flashcards

Question

types of ownership (3)

Answer 1

fee simple: - own forever, long-term ownership - can sell it,rent it and pass to your kids or leave in will ex: I won my house, I can sell it Life estate: - own for your lifetime only - cannot pass it down like fee simple - ownership ends when you die, and you cannot upgrade it to fee simple Pur Autri Vie - for the life of another - Mr. 3's interest lasts as long as Mr. 2's life estate is alive - Mr. 3 buys a life insurance policy on Mr. 2 so if he dies, the life insurance company pays for the price of the property that Mr. 2 owned - Leisure world: much of that property is owned as a life estate, condo/house for their life and goes back to leisure inc., cheaper option

Answer 2

Lease: 1. tenancy for years (fixed-term) - tenancy of possession - Tenancy for years is a bit of a misnomer: it can be for 10 years or 10 months - tenancy for sufferance: possession without a right because time is overdue 2. Periodic - created by a lease that does not specify a term but does specify that rent is to be paid at certain intervals, such as weekly, monthly, or yearly 3. month to month: apartment rent Easement: the right to use another person's property for a specific purpose - water company is in the back of my house creating a mess to put in a new water heater (USE)

Answer 3

type of title (joint, community) - Physical typing of the document

Answer 4

GD (doc of title): gives title to the buyer - title of transfer, pay by life estate or pur atri vie, document of ownership for real estate, receipt of ownership, what the owner uses to transfer ownership Bill of sale: for personal property like a car

Answer 5

Tenant in Common: - concurrent ownership, own a particular property together 4 people decide to put money into a property in mammoth lake, to share expenses & profits - Mr. 1 is moving & gives ownership to Mr. 5 - can Will away to other 3 tenants (heirs) - A will transfers the title (judge does it) Joint Tenancy - cannot will away the joint tenancy - right of survivor ship: surviving tenants inherit the deceased interest evenly amongst themselves Community Property (california) - not english common law, is mexican - concerns marriage rights - all property acquired after marriage - husband and wife get divorced, she takes the dog with her - The ex-husband has the right to house because he put community property (his & hers income) into the house

Answer 6

First in Time - First in RIght: - in transaction from conveying one title to another - Mr. Owner (Mr. con man) sells his property to Mr. #1, sells same property to Mr #2, 3, 4 - all arrive at the same time & argue who has the right to own - Common law: Mr. #1 owns the title bc he was the FIRST; transfer of title from Mr. Conman gave full rights to Mr. #1 proved by the date on deed Race Notice - modern law rule: first one to file the deed - Mr. #3 recorded his deed first at the OC office - deed is recorded where the property is & after the borrower owns the property

Answer 7

(deed of trust): - borrower.buyer sign two documents: the note (application/promise to pay back money (IOU)) - since they have the house in their name, deed of trust is pledged as collateral to the bank - not signed by seller

Answer 8

Independent third-party company that is hired because nobody trusts each other - typcial house purchase (there's sellter & buyer, & they have a purchase sales agreement) - house is $100,000 but they only have $30,000; they go to Bank of America to get $70,000 loaan - Seller does not want to give the buyer the deed until he gets the money, & vice versa, the buyer won't give money until he gets the deed - buyer, seller, and lender hire a third party: ESCROW - escrow holds the money that the buyer & seller give - escrow records the deed in the county where the property is located in the name of the buyer - instantly wires the sale proceeds to the buyer; all money is dispersed where needed, transaction is completed except the bank needs to be protected - (ESCROW HOLD title, deed, and money, and if they are ready to close transaction, escrow disperses money to seller and records files the deed in name of new buyer, escrow holds money and title, makes change between the parties) - bank record/file deed of trust/mortgage

Answer 9

Public policy is to enhance competition in the market place by preventing unreasonable restraints on trade (monopoly - conspiracy) - federal government agency that enforces antitrust law is the Federal Trade Commission (FTC) - the "rule of reason": federal trade commission will not go after a company if it makes sense, even if its a monopoly reasonable = left alone If the rule of reason had not been developed, almost any business agreement could conceivably be held to violate the Sherman Act. - Baseball is the only industry exempt from antitrust

Answer 10

Federal law passed in 1890 which attempts to prohibit "conspiracies" between business - company that gets so large it restrains other companies form competing - anti-monopoly direct descendants of common law actions intended to limit restraints of trade ( agreement between or among firms that have the effect of reducing competition in the marketplace)

Answer 11

1. the possession of monopoly power in the relevant market 2. "The willful acquisition or maintenance of the power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.”

Answer 12

Prohibits monopolies - anti-consiracy between companies to drive another out of business - conspiracy: is an agreement between 2+ parties in an unlawful purpose - ex: 1 and 2 lower prices, drive out 3, and 1 and 2 are left in the market

Answer 13

prohibits price discrimination - can have different prices if the volume and quality are different - must be same price if it's the same product

Answer 14

defense mechanism a target company utilizes to fend off an acquisition - Company #1 is a supplier/vendor Company #2 also a supplier Company #3 wants to buy company #1; Company #2 is the white knight and can buy #1 to enlargen size so #3 cannot compete; Company #2 has a higher horsepower can result in a violation of the Sherman act; both can cause a monopoly merge or buy the company merge for variety of rational reasons companies are similar, geographically similar and have a good mix, management is similar, money reasons acquisitions ex: Disney wants to buy Marvel, LucasFilms, Pixar because they don’t have the talent, time, or money to hire another Pixar

Answer 15

(UP HIGHER): Disney manufactures entertainment/movis - if allowed, they buy a distribution company to distribute movies internationally, nationwide big theater chains - would control distribution (WHOLESALE) of films and other films, how much each film, how many films - going to have their own but later lets other companies in - reduces competition in the market by allowing acquisitions and mergers like that (SAME LEVEL): disney buys big studios, warner brothers, paramount, etc - becomes singular, powerful, manufacturer - chains have to go to Disney to provide their films - room for abuse when there's only one manufacturer - FTC (FORCING FEDERAL AGENCY) oversees monopolistic activity whether its vertical/horizonal - international companies must walk a tight rope to comply with US Government; EUROPE AND SOUTH AMERICA have similar regulations - Europe does not like US technology, too big too powerful

Answer 16

- allows deeds to be recorded in the public record for a fee

Answer 17

- provides that all securities transactions must be registered with the SEC unless they are specifically exempt from the registration requirements. - essentially a resume because the FTC wants to review the company to ensure they have integrity SEEKS PERMISSION TO SELL STOCK TO THE PUBLIC - Violations: you go to jail if you lie since you’re investing to the public

Answer 18

- an investment contract is any transaction in which a person (1) invests (2) in a common enterprise (3) reasonably expecting profits (4) derived primarily or substantially from others’ managerial or entrepreneurial efforts. - Howey sold squares of real estate; not stock but sales securities

Answer 19

- you must disclose to the public about who you are has a variety of laws deals with the sales and resales of stock have to give a resume about the company to the public before selling - before you sell stock to public, not only disclosure, you must register the stock and get permission to sell stock - must file an application, must apply registration recruitment and security document - publicly traded company- stock is hold to public through broker, stock market - privately held- stock not sold to public, held privately

Answer 20

blue sky law: - individual states have laws on top of federal laws about stock laws within their borders - intra not inter; must be within - 1929 stock certificates sales that were only worth “blue sky”

Answer 21

prohibits fraud: ensures no insider trading - someone who has access that rest of investors don't have, because of it they buy or sell stock - antifraud and antitrade

Answer 22

- certain shareholders (large/10%) cannot buy and sell stock because it entails that they can affect the stock - - price since they own so much must hold stock for 6 months before selling; 6 months is considered an eternity - your action can cause a trigger in the stock market

Answer 23

- solicitation of one shareholder to allow another shareholder to vote their shares for them - if you believe the company is not doing well, stockholders can bundle their stock and suggest improvements and elect other people - can combine their votes in bulk - Conveying the right from one shareholder to another regarding their stocks; DOES NOT INCLUDE SALE TRANSACTION, simply borrowing right to vote someone else’s share.

Answer 24

- when someone has inside information about a trading, without if being released to the public yet; people have advance notice that other people cannot - situation where an insider (someone who has inside, non-public information and buys stocks with the information) secretly changing information

Answer 25

- receives a tip about stock through insider information - Anyone who acquires inside information as a result of a corporate insider’s breach of his or her fiduciary duty can be liable under SEC Rule 10b-5.

Answer 26

members of board don't have to be right, titled to be wrong and dont have liability for making wrong decisions, proposition that as long as these people exercise rationale thought, no liability but if they are arbitrary, flip a coin, cus they feel like it, they are responsible

MGMT final Flashcards

(50 cards)