Business Law

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Business Law
2011-05-02 19:24:19
Chapter Thirty Seven

Limited Liability Companies and Special Business Forms
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  1. A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership.
    Limited Liability Company (LLC)
  2. The term used to designate a person who has an ownership interest in a limited liability company.
  3. The document filed with a designated state official by which a limited liability company is formed.
    Articles of Organization
  4. In an LLC, an agreement in which the members set forth the details of how the business will be manages and operated
    Operating Agreement
  5. A joint undertaking of a specific commercial enterprise by an association of persons. A _____ is normally not a legal entity and is treated like a partnership for federal income tax purposes
    Joint Venture
  6. An investment group of persons or firms brought together for the purpose of financing a project that they would not or could not undertake independently
  7. A hybrid form of business organization that combines characteristics of a corporation (shareholder-owners, management by directors and officers of the company, and perpetual existence) and a partnership (it is formed by agreement, not statute; property is usually held in the names of the members; and the shareholders have personal liability for business debts). Usually, the_____ is regarded as a partnership for tax and other legally related purposes.
    Stock Joint Company
  8. A voluntary form of business organization in which investors (trust beneficiaries) transfer cash or property to trustees in exchange for trust certificates that represent their investment shares. Management of the business and trust property is handled by the trustees for the use and benefit of the investors. The certificate holders have limited liability (are not responsible for the debts and obligations incurred by the trust) and share in the trust's profits.
    Business Trust
  9. An association that is organized to provide an economic service to its members (or shareholders). An incorporated ____ is a nonprofit corporation. It will make distributions of dividends, or profits, to its owners on the basis of their transactions with the _____ rather than on the basis of the amount of capital they contributed. Examples of ____ are consumer purchasing ____, credit _____, and farmers' ______.