Business Chapter 16

Which of the following is not a way that a partnership can be dissolved

By the RUPA

The owners of an LLC escape _ taxation

Double

A public corporation can either be a C corporation or an S corporation

False

A blank corporation is form for educational, religious, charitable, or social purposes

Non profit

Courts will sometimes blank and hold shareholders personally liable

Piercing the corporate veil

Avoids double taxation but has limitations on the number of shareholders allowed

S corporation

An individual who has one vote for every share of stock held

Shareholder

Which of the following partnership right was added when the UPA was revised

The right to sue a partner of the partnership

Most partnership law is set forth in the

Uniform Partnership Act

A partnership that is formed simply by the way two or more people conduct their business together is called

partnership by proof of existence

Compare and contrast is sole proprietorship and a partnership

S -easy to form -total control -all profits -one time taxation -limited capital -unlimited liability -limited lifetime P -more capital and credit -less work per person -contract liability -tort liability -must share the profits -bickering -share liability

A blank partner has an active role in a limited liability but is not publicly known to be a partner

Secret

A Blank is the easiest type of business to form

Sole proprietorship

An LLC must have a blank in the state where it is organized

Statutory agent

Example of a public corporation is

The local school district

A partner cannot personally transfer ownership of property.

True

Business profits or losses are combined with the sole proprietor's other income for tax purposes.

True

A partnership with one or more general partners in one or more limited partners

limited partnership

Property contributed to the partnership when is established is called blank

Partnership property

Subject to double taxation

C corporation

A secret partner has limited liability for the partnership's debts.

False

And entity with the legal authority to act as a single person, distinct from its owners

Corporation

When a partnership ends, the firms assets our first paid to

Creditors other than partners

Allows the business to continue doing business I want a partner leaves the firm

Dissociation

The biggest advantage to a sole proprietorship is the limited liability regarding losses and lawsuits.

False

A corporation that formed in Texas but operates in Florida is called a

Foreign corporation

Every partnership must have at least one _ partner

General

A business entity that combines the best features of a partnership and a corporation

Limited liability company (LLC)

A business in which each partner is not responsible for the acts of the other partners

Limited liability partnership (LLP)

In a corporation the shareholders liability is

Limited to the amount of money paid for the shares in the corporation

Coownership of all real and personal property included in the partnership is referred to as

Tenancy in partnership

The dissolution of an LLC is similar to a partnership and can occur for any of the same reasons

True

Unless otherwise stated in the partnership agreement, partners share equally in the profits.

True

Before partnership ends, there must be blank. To close down business operations

Winding up

In a partnership, all the partners must be stupid together in a lawsuit

Joint liability

In a general partnership, each partner is liable for the other partners' actions within the scope of the partnership.

True

The articles of incorporation is a legal document filed with the state in order to establish a corporation

True

The difference between a joint venture and a partnership is that there are no ongoing relationship in a joint venture.

True

A partner who takes no active role, but is known publicly and has unlimited liability is a

silent partner

Form of business that is owned and operated by one person

sole proprietorship