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62 Cards in this Set
- Front
- Back
creditors that dont have collateral
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unsecured
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self help repo must be done without any
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breach of peace
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lien against personal property to ensure payment for repairs or improvements on personal property
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artisans lien
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lien against real property. to ensure payment for repairs or improvements on real property
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mechanics lien
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a cosigner is also known as a
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surety
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who is primarily liable for the debt to the creditor
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surety
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this person is secondarily liable for the debts to the creditor
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guarantor
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is bankruptcy expensive
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yes
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when a group of creditors get together and force a debtor into bankruptcy
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involuntary bankruptcy
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if a defendant is discharged, do sureties and guarantors remain liable
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yes
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the most popular and easiest form of business is
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sole proprietorship
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in a sole proprietorship do you have to file anything with the government
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no
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what taxes does a sole proprietorship pay
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only personal taxes
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what is the main disadvantage of a sole proprietorship
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unlimited personal liability
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an agreement, express or implied between 2 or more persons to carry on a business for profit
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general partnership
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what is the key advantage of a general partnership
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pass through taxation
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moral and personal responsibilities owed to the other
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fiduciary duties
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where one partner leaves a partnership and has his interest bought out
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partner dissociation
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where all partners leave a partnership
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partnership dissolution
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what is the key disadvantage of a general partnership
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unlimited personal liability
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one general partner and one or more limited partners
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limited partnership
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in a limited partnership, liability is limited based on
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how much they have invested
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can the limited partner in a limited partnership participate in the management process
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no
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who has unlimited personal liability in a limited partnership
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the general partner
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does a limited partnership have pass through taxation
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yes
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a hybrid form of partnership designed mostly for professionals who normally do business as partners
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limited liability partnership (LLP)
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does a LLP have pass through taxation
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yes
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must follow requirements of state incorporation statute
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corporations
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what is the most popular state to incorporate in
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delaware
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who are the owners in corporations that elect the board of directors
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shareholders
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advantage of corporations
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limited liability of shareholders
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disadvantage of corporations
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taxed twice
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certain small corporations can elect pass through taxation if it meets certain arbitrary requirements (no more than 100 shareholders, no foreign shareholders)
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S corporations (small corporations)
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a hybrid form that offers the limited liability of a corporation but the tax advantages of a partnership
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limited liability corporation (LLC)
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advantage of LLC
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limited liability and ability to manage (unlike a limited partnership)
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how is an LLC with 2 or more members taxed
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as either a partnership or a corporation (flexible)
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can foreign investors participate in an LLC
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yes
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does an LLC have pass through taxation (members pay individual taxes)
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yes
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passive owners that dont have a say in how the business is run. however, they can elect the directors
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shareholders
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who are the ultimate authority in every corporation
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the board of directors
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in a corporation, who are the officers hired by
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the board of directors
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can personal loans be made by corporations to officers and directors
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no (Sarbanes oxley act)
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all employees who deal with the public are (cashiers)
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implied agents
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an agency agreement that isnt in writing
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express agreement (still legit agency)
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a formal document creating an agency relationship
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power of attorney
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how is an agency's authority determined
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may be express or implied
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if the agent is an independent contractor, is the principle responsible for the torts of the agent
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no
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if an agent has no authority but nevertheless contracts with a 3rd party, is the principle liable
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no. the agent is personally liable
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if an agent DOES have authority to enter into a K with a 3rd party, the principle is liable, but will the agent ALSO be personally liable?
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depends on where the principle is disclosed or undisclosed
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under what circumstances would an agent not be personally liable
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if it had actual authority and a DISCLOSED principle
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who is liable for TORTS committed by the agent
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the agent always is. the principle can also be liable if they ordered the agent to commit the tort or if it was committed within the scope of employment
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can an independent contractor be an employee
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no
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you only have 300 days to file a claim under the
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short statute of limitations
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before bringing a suit to the employer, a plaintiff must first obtain a
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right to sue letter from the EEOC (equal employment opportunity commission)
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failure to reasonably accommodate only applies to
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religion and disabilities
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a tangible employment action under sexual harrassment only by
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supervisors
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hostile environment can be caused by
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anyone. even non-employees
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can race be a BFOQ
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NO!
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if you have a disabled spouse or child and are discriminated against
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association discrimination
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affirmative action programs can specify desired percentages (quotas)
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FALSE
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negotiated settlements are also known as
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adjudication
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the 4th branch of the American government is
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agencies
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