Connect 5
1. Disagreement over workload 2. Arguments over dividing profits 3. Opposing management styles
3 reasons disagreements can ruin a partnership
Articles of incorporation and bylaws
A corporation is formally formed with...
Is traded on the stock exchange
A master limited partnership looks much like a corporation because it...
It is taken over by an heir or sold to someone else
A sole proprietorship has a limited life span unless...
Do not pay taxes as corporations do and increase economic power
Advantages of farm cooperatives for their members is that they...
General partnership
All partners share in operating the business
Partnership
An LLC submits a written operating agreement similar to a... Agreement describing how the company is to be operated
Must receive dividends
An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors...
Limited liability
And advantage of the corporate form of business ownership...
1. Acts like a corporation 2. Taxes like a partnership 3. Traded on the stock exchange
Attributes of a master limited partnership
The coattail effect
Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as...
A major advantage
Because owners are only responsible for losses up to the amount they have invested in a corporation, limited liability is considered...
Limited partnership
Has partners who do not share in operating the business
Some proprietorship
If you start imagine landscaping business on your own you have likely started a...
Stock
Issued by corporations to shareholders and allows ownership to change when its sold
Horizontal merger
Joining of two firms in the same industry
False
T/F: in a limited partnership, the liability of the limited partners is unlimited and personal assets are at risk
Unlimited liability
The disadvantage of silver partnerships is that any debts or loss occurred in the business or your dads because you and the business or illegally one and you have...
Limited liability
The responsibility for a loss only up to the amount invested is...
Operations
The right to participate in managing the...of the business is a key element of general partnerships to the uniform partnership act
1. Partners are not help liable for each other's actions 2. When a partner is sued individually for malpractice, it does not affect other partners 3. Liability is limited to losing only personal assets directly related to personal acts
Ways LLP deal w liability for partners
1. The financial contribution of each partner 2. The level of participation of each partner 3. A partners level of expertise in different areas of business
When choosing to form a partnership, a business owner should consider all of the following:
merger
When two firms join together to form one new company
Vertical merger
When two firms operating in different stages of related businesses join
Limited liability
Form of business ownership that provides limited liability, as in a corporation, but is taxed like a partnership
Keep minutes or hold annual meetings
LLCs are considered to have operational flexibility because while they must submit articles of organization they are not required to...
1. Paid health insurance 2. Paid sick or vacation leave time 3. A pension plan
Considered fringe benefits that people working for a company are likely to receive, but a sole proprietorship has to develop on his own...
Bylaws
Describe how the firm is to be operated from both legal and managerial points of view
Stock
Ease of ownership means that buying or selling... Is all that is necessary to become an owner or past owner of a corporation
1. Owners/stockholders elect board of directors 2. Board of directors hire officers of the corporation 3. Officers hire managers of the corporation 4. Managers hire employees
List the material hierarchy
Conglomerate merger
Merger that joins firms in completely unrelated industries
Corporation
State chartered legal entity with authority to act and have liability separate from its owners
Seperate
Stockholders are... From the managers employees of the firm because they are not actively involved in the operations of the firm
Acquisition
Where one company purchases the property and obligations of another
Leveraged buyout
an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing