Chapter 11 - How Home Ownership is Held
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.
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.
Severalty Ownership
Owned by one person only. Sole 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.
A joint tenancy is terminated when which of the following ceases to exist...? All of the above Interest Possession Title
All of the above
Each spouse in a community property has equal rights to which of the following...? Alienation Management Testamentary disposition All of the above
All of the above
Real property can be owned in which of the following forms...? Severalty Co-ownership In trust All of the above
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
All of the above
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.
Partnership
An association of two or more people who operate a business as co-owners and share in the business profits and losses.
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...? Devisee Beneficiary Trustor Primary owner
Beneficiary
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 Partnership LLC Limited Partnership
Corporation
Co-ownership in a property can be terminated by which of the following...? All of the above Purchase of a new property Foreclosure Disagreement among co-owners
Foreclosure
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...? LLP Corporation General partnership LLC
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 Tenancy in common Community property Severalty ownership
Joint tenancy
This business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation...? Limited Partnership Limited Liability Partnership S-Corp Limited Liability Company
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 partition Escheat Living escrow Living trust
Living trust
How is ownership in a community property between a husband and wife divided...? Based on the amount of down payment by each owner Based on the credit score of each owner None of the above Ownership is divided equally among the owners
Ownership is divided equally among the owners
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 Living trust Tenancy in common Testamentary trust
Right of survivorship
When someone is the sole owner of a property, they are said to have this type of ownership...? Joint Tenancy Community Property Severalty Ownership Tenancy in Common
Severalty Ownership
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.