Wealth Creation Flashcards Preview

COMM 347 > Wealth Creation > Flashcards

Flashcards in Wealth Creation Deck (10):
1

What benefits the non aboriginal entity in a partnership?

Access to new markets, political capital, demographics (un used labour market) financial growth, succession planning

2

What is the tower of payroll look like?

Secured creditors first
Unsecured creditors - employees, tax
Sustaining growth expenses
Growth
Dividends
Owners

3

What are the three legal structures?

Sole proprietorship
Partnerships
Corporations

4

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

5

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

6

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

7

What quote should you know?

Good paper makes good friends

8

What is a unanimous shareholder agreement (USA)?

There is a board of directors
Major decision requirements are management vs board vs stare holders

9

What is a partnership agreement?

Cash distributions
Cash calls

10

Why should a FN partner? What do they gain?

- gives own source revenue
- brings credibility by having management expertise on the partners side, and the fn can participate in the business making process
- there are potential training opportunities