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