Chapter 26

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luissantan06
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51455
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Chapter 26
Updated:
2010-11-29 22:07:08
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Business Law Chapter
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Chapter 26 Flash Cards
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  1. Partnership
    An agreement by two or more person to carry on, as co-owners, a business for profit
  2. Pass-Through Entity
    A business entity that has no tax liability. The entity's income is passed through to the owners, and the owners pay taxes on the income.
  3. Are partners liable for personal liability
    Partnerships are not liable for the personal debts and liablilities of all the rest partners
  4. Dissolution
    The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or, in a corporation, acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration of a time period stated in a partnership agreement or a certificate of incorporation; or (4) judicial decree
  5. Winding Up
    The second of two stages in the termination of a partnership or corporation. Once the firm is dissolve, it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
  6. Limited Partnership
    A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable only up to the extent of their contributions).
  7. General Partner
    In a limited partnership, a partner who assumes responsibility
  8. Only a managing partner has a right to complete information about the conduct of partnership business.

    True or False
    False
  9. Each partner has the right to sell partnership property as if he or she was the exclusive owner.

    True or False
    False
  10. A general partner is severally liable for all partnership obligations.

    True or False
    True
  11. In winding up a general partnership, creditors are paid after partners receive their capital contributions.

    True or False
    False
  12. A general partner is personally liable for partnership debts if its assets are insufficient to pay its creditors

    True or False
    True
  13. Most States require a limited partnership to file a certificate of limited partnership with the appropriate state office.

    True or False
    True
  14. In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she invests in the partnership.

    True or False
    True
  15. The death of a limited partner dissolves a limited partnership.

    True or False
    False

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