Legal Awareness

... of the partners is required to make basic changes in the nature of the business or the partnership agreement.

Unanimous consent

Chase, the owner of Data Master, a sole proprietorship, wants to obtain additional business capital. This opportunity is most likely limited to

borrowing funds

A partner ... be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

cannot

A .... is one whose shares are held by a single person, members of a family, or relatively few unrelated persons.

close corporation

... recognized by law as a "flesh and blood person."

corporation

When the owner of a sole proprietorship dies, the business...

dissolves

Every act of a partner concerning partnership business binds the...

firm

Jess and Keri are members of Livewire LLC, a limited liability company. In most situations, with respect to Livewire's debts, Jess and Keri are:

shielded from personal liability for the debts of the business only

Without creating a separate business organization, Roy starts up Street Cruisers, a new, pre-owned auto sales enterprise. Roy is a...

sole proprietor

Del owns Everlast Painting, a sole proprietorship. Del's liability is...

unlimited

Rosa and Sean are shareholders of Tasty Tacos Inc. Rosa's written authorization to Sean to vote Rosa's shares at a shareholders' meeting is a...

proxy

Burgers & Brew Inc. prepares its articles of incorporation (articles of incorporation = charter = certificate of incorporation). The articles are likely to include the number of shares the corporation is authorized to issue, the corporation's name, and the corporation's...

registered agent

Selections, a general partnership, operates a gift shop. Selections has five partners. Tony has a one-third interest in the partnership. Each of the other partners has a one-sixth interest. The partnership agreement does not specify any rule controlling decisions in ordinary matters connected with the partnership business. With respect to everyday management decisions

a majority of the partners must agree, irrespective of the size of each partner's interest in the partnership.

The liability of the members of a limited liability company for the firms' debts and obligations is

limited

ord is the sole proprietor of Go, an app service. As a sole proprietor, on the business's profits, Ford pays

only personal income taxes

Len is a member of Maintenance Service, a limited liability company. The firm's profits are "passed through" to Len and the other members who pay

only personal income taxes.

Able Accounting, LLC, is a limited liability company. With respect to the firm's management, Able's members can

participate fully.

Rosalee is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosa is

personally liable to the full extent, jointly and severally with the other partners.