Flashcards in Wealth Creation Deck (10):
What benefits the non aboriginal entity in a partnership?
Access to new markets, political capital, demographics (un used labour market) financial growth, succession planning
What is the tower of payroll look like?
Secured creditors first
Unsecured creditors - employees, tax
Sustaining growth expenses
What are the three legal structures?
What are pros and cons of a limits liability partnership?
- the fn would hold the debt of the partnership to an extent
+99.9% of income is non taxable because it is fn, .01% is taxed under the corporation
+ corporation has defined goals, set purpose
+ more permanent in nature
Tell me about a joint venture?
Common when there is only one dominant industry partner
Usually project oriented
Compensation for capital employed
Contracted instead of business relationship
Easy to get into and exit
What is the difference between a partnership and a joint venture?
A partnership generally involves an ongoing, long term relationship, where a joint venture in created for one business opportunity or project
What quote should you know?
Good paper makes good friends
What is a unanimous shareholder agreement (USA)?
There is a board of directors
Major decision requirements are management vs board vs stare holders
What is a partnership agreement?