Exam 1 Concept Review FINA 3332 UPDATED ACTUAL Questions And Correct
Answers
, Terms in this set (50)
Sole Proprietorship A business owned by one person
Sole Proprietorship Advantages straightforward to set up
fewer government regulations
owner has unlimited personal liability for the firm's debts
difficult to transfer ownership of a sole proprietorship
Partnership Business owned and run by more than one owner
partnership features all partners are liable for the firms debt
partnership ends in the event of the death or withdrawal of any single partner
partners can avoid liquidation if the partnership agreement provides for
alternatives such as a buyout of a deceased or withdrawn partner
limited partnership a parternship with two kinds of owners: general and limited parnters
General Partner have the same rights and privelages as partners in any general partnership
General Partner Features Personally liable for the firm's debt obligations
generally ends on the death or withdrawal of any partner unless there is an
alternative agreement
Limited Partner have limited liability
Limited liability when an investor's liability is limited to her investment
Limited liability features has no management authority and cannot legally be involved in the managerial
decision making for the business
limited liability and their ownership is transferable
Limited Liability Company (LLC) a limited partnership without a general partner
Limited Liability Company Features All members can run the business
Relatively new to the US
First state to pass this type of firm was Wyoming in 1977 Last was Hawaii in 1997
Older and established
Corporation a legal entity with authority to act and have liability apart from its owners
Corporation Legal Features Enter contracts,
Acquire assets
Incur obligations
Enjoys protection under the U.S constitution against seizure of the property
Solely responsible for its own obligations
Answers
, Terms in this set (50)
Sole Proprietorship A business owned by one person
Sole Proprietorship Advantages straightforward to set up
fewer government regulations
owner has unlimited personal liability for the firm's debts
difficult to transfer ownership of a sole proprietorship
Partnership Business owned and run by more than one owner
partnership features all partners are liable for the firms debt
partnership ends in the event of the death or withdrawal of any single partner
partners can avoid liquidation if the partnership agreement provides for
alternatives such as a buyout of a deceased or withdrawn partner
limited partnership a parternship with two kinds of owners: general and limited parnters
General Partner have the same rights and privelages as partners in any general partnership
General Partner Features Personally liable for the firm's debt obligations
generally ends on the death or withdrawal of any partner unless there is an
alternative agreement
Limited Partner have limited liability
Limited liability when an investor's liability is limited to her investment
Limited liability features has no management authority and cannot legally be involved in the managerial
decision making for the business
limited liability and their ownership is transferable
Limited Liability Company (LLC) a limited partnership without a general partner
Limited Liability Company Features All members can run the business
Relatively new to the US
First state to pass this type of firm was Wyoming in 1977 Last was Hawaii in 1997
Older and established
Corporation a legal entity with authority to act and have liability apart from its owners
Corporation Legal Features Enter contracts,
Acquire assets
Incur obligations
Enjoys protection under the U.S constitution against seizure of the property
Solely responsible for its own obligations
