BUSA 2106 TEST QUESTIONS AND ANSWERS A+
GRADED. Buy Quality Materials!
Limited Liability Partnership (LLP)
All partners enjoy limited liability with regards to the business's liabilities and their
potential losses are limited to their investment in the LLP; Joint operational control
among partners; isnt taxed by IRS.
Limited Liability Limited Partnership (LLLP)
A type of limited partnership. The difference between a limited partnership and an LLLP
is that the liability of the general partner in an LLLP is the same as the liability of the
limited partner. That is, the liability of all partners is limited to the amount of their
investments in the firm; isnt taxed by IRS.
Limited Liability Company
Combines partnerships and corporations; Statute; Members generally with an operating
agreement; Full participation of all members; Change from state to state.
Joint Venture
A partnership created by two or more companies for a specific purpose over a set
period of time.
Franchise
Distributorships: car dealerships
Chain-Style: fast food
Manufacturing: bottling factory
Franchise Contract
Payment, Premises, Location, Quality Control.
Corporation
Shareholders/ Board of Directors/ Officers, Limitation on Liability, Double Taxation,
Private(private benefit) or Public(formed for public good by government), For Profit or
Not for Profit.
Close Corporation
Buy-Sell Agreement, first offer to corperation then other shareholders before you sell.
SubChapter S Corporation
100 or fewer shareholders for tax.
Articles of Incorporation
1. Must file with Sec. of State
2. Must have registered agent/address.
GRADED. Buy Quality Materials!
Limited Liability Partnership (LLP)
All partners enjoy limited liability with regards to the business's liabilities and their
potential losses are limited to their investment in the LLP; Joint operational control
among partners; isnt taxed by IRS.
Limited Liability Limited Partnership (LLLP)
A type of limited partnership. The difference between a limited partnership and an LLLP
is that the liability of the general partner in an LLLP is the same as the liability of the
limited partner. That is, the liability of all partners is limited to the amount of their
investments in the firm; isnt taxed by IRS.
Limited Liability Company
Combines partnerships and corporations; Statute; Members generally with an operating
agreement; Full participation of all members; Change from state to state.
Joint Venture
A partnership created by two or more companies for a specific purpose over a set
period of time.
Franchise
Distributorships: car dealerships
Chain-Style: fast food
Manufacturing: bottling factory
Franchise Contract
Payment, Premises, Location, Quality Control.
Corporation
Shareholders/ Board of Directors/ Officers, Limitation on Liability, Double Taxation,
Private(private benefit) or Public(formed for public good by government), For Profit or
Not for Profit.
Close Corporation
Buy-Sell Agreement, first offer to corperation then other shareholders before you sell.
SubChapter S Corporation
100 or fewer shareholders for tax.
Articles of Incorporation
1. Must file with Sec. of State
2. Must have registered agent/address.
