Business law 3301 EXAM 4 || with 100% Accurate Solutions.
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Course
Business law 3301
Institution
Business Law 3301
Sole Proprietorship correct answers business owned and operated by one person; the owner is the business and the business is the owner
Entrepreneur correct answers Someone who initiates and assumes the financial risk of a new enterprise
Advantages of Sole Proprietorship correct answers sole o...
Business law 3301 EXAM 4 || with 100% Accurate Solutions.
Sole Proprietorship correct answers business owned and operated by one person; the owner is the
business and the business is the owner
Entrepreneur correct answers Someone who initiates and assumes the financial risk of a new
enterprise
Advantages of Sole Proprietorship correct answers sole owner
low compliance
right to all profits
control
only pays personal income taxes
Disadvantages of Sole Proprietorship correct answers unlimited personal liability
cannot be passed down after death (only the assets)
General partnership correct answers Two or more owners; each owner is fully responsible for
liabilities.
Elements of a partnership correct answers A sharing of profits and losses.
A joint ownership of the business.
An equal right to be involved in the management of the business.
Partnerships may hold the title to ________________________ rather than in the names of the
individual partners. correct answers real or personal property in its name
pass-through entity correct answers A business entity that has no tax liability. The entity's
income is passed through to the owners, and they pay taxes on the income.
Partnership agreement correct answers an agreement that clearly states what each partner of a
business has agreed to
Partnership duration correct answers The partnership agreement MAY specify the duration of the
partnership in terms of a date or the completion of some undertaking
Partnership by estoppel correct answers occurs because someone does or says something that
leads a third party to believe that a co-ownership exists.
The Uniform Partnership Act correct answers United States legislation that serves as a guide for
legally formulating a general partnership agreement
, The rights of partners under the UPA correct answers management
interest (profits)
compensation
inspection of books
property rights
Partnership property correct answers includes property acquired by partnership and in the name
of partnership
Partners duties correct answers duty of care
duty of loyalty
Duty of care correct answers refraining from "grossly negligent or reckless conduct, intentional
misconduct, or a knowing violation of law"
not liable for negligence
Duty of loyalty correct answers requires a partner to account to the partnership for "any property,
profit, or benefit" derived by the partner in the conduct of the partnership's business or from the
use of its property.
refrain from competing with partnership
Partner liability correct answers As a general rule, a partner is not liable for her partner's personal
debts.
Incoming Partners correct answers Newly-admitted partners are liable for debts and obligations
incurred before they joined the partnership only to the extent of their capital contribution.
Partnership dissociation correct answers A partner may cease being associated with the
partnership's business by notifying her partners that she wishes to withdraw due to death,
incapacity, bankruptcy, or assigning her partnership interest for the benefit of creditors.
Partnership dissolution correct answers The formal disbanding of a partnership, corporation, or
other business entity. For instance, partnerships can be dissolved by acts of the partners, by
operation of law, or by judicial decree.
Winding up correct answers the actual process of collecting, liquidating, and distributing the
partnership assets
Partnership assets are distributed as follows: correct answers payment of third party debts; then
return of partner's capital contribution and distribution of profits to the partners
Franchise correct answers The owner of a trademark, trade name, or copyright (the franchisor)
allows another person or entity (the franchisee) to use that trademark, trade name, or copyright
franchisee correct answers A person who buys a franchise
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