Chapter 11

Limited Liability Company (LLC)

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Which of the of the following unities is required to create a joint tenancy...?

All of the above Time Title Interest

Partnership

An association of two or more people who operate a business as co-owners and share in the business profits and losses.

Co-ownership in a property can be terminated by which of the following...?

Foreclosure

When someone is the sole owner of a property, they are said to have this type of ownership...?

Severalty Ownership

An ownership of realty by two or more persons, each of whom has an undivided interest, without the "right of survivorship" is known as...?

Tenancy in Common

Property owned by one person only is referred to as...?

Severalty Ownership

Partition

A division of real or personal property or the proceeds therefrom among co-owners.

Trusts

A legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

Limited Partnership

A partnership consisting of a general partner or partners and limited partners in which the general partners manage and control the business affairs of the partnership while limited partners are essentially investors taking no part in the management of the partnership and having no liability for the debts of the partnership in excess of their invested capital.

Each spouse in a community property has equal rights to which of the following...?

Alienation Management Testamentary disposition All of the above

A joint tenancy is terminated when which of the following ceases to exist...?

All of the above Interest Possession Title

Living Trust

An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive.

General Partnership

An arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.

Corporation

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.

Tenancy in Common

An ownership of realty by two or more persons, each of whom has an undivided interest, without the "right of survivorship".

One entitled to the benefit of a trust is referred to as the...?

Beneficiary

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...?

Community Property

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is referred to as a...?

Corporation

In this type of arrangement, partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations...?

General partnership

Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as...?

Joint tenancy

his business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation...?

Limited Liability Company

An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive is referred to as a/an...?

Living trust

Severalty Ownership

Owned by one person only. Sole ownership.

How is ownership in a community property between a husband and wife divided...?

Ownership is divided equally among the owners

A division of real or personal property or the proceeds therefrom among co-owners is known as...?

Partition

Community Property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse had equal rights of management, alienation, and testamentary disposition of community property.

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...?

Right of survivorship

Real property can be owned in which of the following forms...?

Severalty Co-ownership In trust All of the above

Which of the following is an example of co-ownership...?

Tenancy in common Joint tenancy Community property All of the above

Right of Survivorship

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.

Joint Tenancy

Two or more natural persons own that comes with a special benefit called the right of survivorship.Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

Beneficiary

one entitled to the benefit of a trust.