Generally speaking, corporations are treated similarly to what else under what law?
“Corporate Person hood” – composed of groups of people, therefore have the ability to exercise legal and constitutional rights of those people
How are franchises taxed?
It depends on the business organization
How many owners can there be in a sole proprietorship?
One ( Individual Entrepreneur)
If someone holds a legally recognized position of trust with another person, what is the legal term describing the person’s relationship to the other?
In a professional partnership, what is generally required of all the partners?
Need to all obtain licences
Organizations from least regulated to most heavily regulated
sole proprietorship- general partnership- limited partnership- limited liability partnership- corporation
Name three different forms of partnerships
LLP, LP and general
Under the theory of joint and several liability, what do we call the partner who can afford to pay if the other partners are unable to pay damages awarded to a victim
creditors and Plantiffs
What are the advantages of being a franchisee?
-Quick start of business with a proven track record
-Guidance and security
-large-scale advertisement and production
What are the advantages of being a franchiser?
Quicker expansion into the market
What are the corporate powers?
-sue and be sued
-make and amend internal operating procedures in it’s bylaws
-buy and sell personal property
-borrow and lend money
-participate in a partnership or other entity
-conduct it’s business inside and outside it’s state or origination
-elect it’s managers
What are the disadvantages of being a franchisee?
-many upfront costs
-no guarantee of success
– franchiser has ultimate control
limit to only distributing the franchiser’s product
What are the disadvantages of being a franchiser?
-limited pool of viable entrepreneurs
-difficult to suspend incompetent franchisees ( could damage the company’s image)
What are the fiduciary duties imposed on partners and what do they entail?
– duty of good faith and fair dealings
-duty of loyalty
-duty of care
What are the four characteristics of corporations?
-continuity of life
-centralization of management
-free transfer-ability of intrests
What are the three forms of assets that a partners may contribute to a partnership?
What are the three general forms of business organizations?
– sole proprietorship
What does the joint and several liability mean?
creditors and plaintiffs can choose to hold a wealthy partner responsible for all the damages whether or not he caused the damages
What does the term liability mean?
What is a franchise?
Grants independent operators (franchisees) the right to distribute it’s products, techniques and trademarks
Who is a franchiser?
Develops products and business systems
Who is a franchisee?
What is like the constitution of a partnership?
A written agreement (contract)
What is the biggest tax advantage of a partnership?
“pass-through” tax entity (The partners are separately taxed, not the partnership)
What is the biggest tax advantage of a sole proprietorship?
they do not have to file a separate business tax
What is the biggest tax disadvantage to corporations?
They have to pay corporate taxes
what is the market instrument that the government requires LLPs to have that serves to both compensate the public for when they are injured by a LLP and also shut down habitually negligent LLPs?
What must be included in the name of a general partnership
Do not need anything
What must be included in the name of a LLP?
Limited Liability Partnership or LLP
What must be included in the name of a limited partnership?
Limited partnership or LP
What percentage of businesses in America are sole proprietorships?
What percentage of revenue do sole proprietorships compose out of all businesses?
Which Supreme Court case established the Fifth Amendment right of corporations to protection from double jeopardy?
Fung Foo vs. United States (1962)
Which Supreme Court case established the rights of corporations to make and enforce contracts just like a natural person?
Dartmouth v. Woodward (1819)
Which Supreme Court case established the rights of corporations to equal protection pf the law under the Fourteenth Amendment?
Pembina v. Pennsylvania (1888)
Which Supreme Court case established the rights of corporations to First Amendment free speech rights, including political speech rights?
Citizens United v. FEC
Which Supreme Court case established the Sixth Amendment right of corporations to a trail by jury?
Amour Packing v. United States (1908)
Who are the owners of corporations?
Who do the owners elect to run the corporation?
officers appointed by Board of Directors
Who has personal liability in a sole proprietorship?
Who has personal liability in a general partnership?
Who has personal liability in a Limited Partnership?
None of the partners
Who has personal liability in a LLP?
No one except the owner
Who has personal liability in a corporation?
Who has personal liability in a franchise?
Who hires corporate officers?
Who is responsible for the debts and obligations of a partnership?
Each partner (General Partnership)
CEO stands for
Chief Executive Officer
CFO stands for
Chief Financial Officer
COO stands for
Chief Operations Officer
CTO stands for
Chief technology Officer
CIO stands for
Chief Information Officer
When is a sole proprietor taxed?
What business organization does the owner have the most liability
What does one have to balance when deciding which buss. organization adopt?
Liability and Taxes
Who oversees the management of a corporation?
Board of Directors
How are corporations taxed?
At the organizational and individual levels
When are partnerships taxed?
Individual level when profits are distributes to partners
What does it mean when someone is legally responsible?
Which partnership does not have general partners with unlimited personal liability?
What Business organization can live forever?
Which Business organization has least liability for the owner?
Who runs the day to day operations of a corporation?
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