Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
52 Cards in this Set
- Front
- Back
What type of business is the most common?
|
Propietorship
|
|
Is the proprietor's business a seperate entity
|
Nope
|
|
To use a business name other than your own name you must..
|
Register your Ficticious name "Nacny's Nail Salon"
|
|
What are the consiquenes if you don't register your ficticious name?
|
Its a 2nd degree misdenminor and u can't sue people without the name being registered.
|
|
A Propietors liability is..
|
unlimited
|
|
T or F
A propietorship wont last through death, disability, or retirement |
True-If someone tried to collect on a warranty that had been given from a propietorship that was inherrited the heir would not have to honnor it since this is considered a new propietorship
|
|
How does a propietorship raise capital?
|
Personal funds or loans
|
|
What number is required for sole proprietorship or local business liesence?
|
EIN or Employer Identification Number
|
|
Is a sole propietorship a seprate tax paying entity?
|
No the income or loses are reported on the owners tax return
|
|
The correct form of business organization can reduce..
|
Taxes, liability and conflict
|
|
If an entreprenure doesn't choice what type of business to be..
|
The law will set a default option
|
|
What are the advantages to a Proprietorship?
|
-Low cost to start
-Propietor recieves all profits -Proprietor makes all decissions -Easily transferred or sold |
|
What are the disadvantages of a propietorship?
|
-Unlimited liabilily
-Entity wont survive death, retirement, or disabililty -May only raise funds through personal funds or personal loans |
|
A contractual relationship where the owner of a trademark, trade name, commercial symbols, operation,system, process or copyright allows another person or entity to use that property, operation, process or system.
|
Franchises
|
|
Advatanges to franchising...
|
-Franchisor can reach new markets while franchisee absorbs most the risk.
-Franchisee has access to Franchisor's knowledge and resources. -Consumers are assured of uniform product qualilty. |
|
Disadvatnages to Franchising...
|
-Must meet franchisors standards or risk loosing franchise
-Little control over the business |
|
The Franchisor manufactures a product and a retail franchisee to distribute the product to the public.
|
Distributor Franchise
|
|
THe Franchisor licenses the franchisee to make and sell it's products or disribute services to the public from a retail outlet serving an exclusive territory.
|
Chain Store Franchise
|
|
The Franchisor provides a secret formula or process to the franchisee. The franchisee manufactures the product and distributes it to a retail dealers.
|
Manufacturing or Process Plant
|
|
_______Protects automobile dealership franchisees whose franchisors impose unreasonable demands and then terminate the franchise because of franchisee's filure to satisfy.
|
Automoblie Dealer's Franchise Act
|
|
_______ Precribes the grounds and conditions under which a franchisor may terminate or decline to renew a gas station's franchise.
|
The Petroleum Marketing act
|
|
Do Franchisors have to disclose material facts like bankrupcy, required purchases or how many franchises allowed in a given area to prospective franchisees?
|
Yes under the Federal Trade Commision
|
|
Franchise agreements usually cover the following things:
|
-Payment (Royalties)
-Business Premises -Location -Quality controls -Price controls -Duration |
|
Franchise Agreements state that termination must be_____
|
For Cause
|
|
If a Franchise agreement is terminated without just cause..
|
The franchisee can sue
|
|
How do you become a Franchisee..
|
You Apply!
|
|
T or F
Franchisors determine the prices. |
False, they may only suggest.
|
|
An association of two or more persons* carrying on a business for profit.
|
Partnership
|
|
In a partnership the requirement of "two or more persons" includes...
|
Multiple actual people, an LLP and a Corp., a person and a Corp., ect...
|
|
T or F
Partnerships are largely governed by statutory law. |
True
|
|
What are the advantages of a Partnership?
|
-The Partnership is a distinct entity of its partners.
-They are easy and inexpensive to form |
|
In forming a Partnership documents that may be filed with the secretary of State:
|
Partnership registration, Statement of authority (who can enter into translation) and Fictisious name registration.
|
|
Disadvantages to a Partnership:
|
-Partners may have personal liability for partnership obligations.
|
|
What are the options for sueing a partnership?
|
Creditor can sue the partnership and all the partners or partnership and one "deep pocketed" partner.
|
|
What is on a partnership agreement?
|
-Partnership's Name
-Decsription of business -Listing of present partners -A statement of contributions made by the present partners -Method for dividing dividends and loses. -Withdraw or addmission of partners -Methods of transfering interest -The Partnerships Term |
|
This Partnership has a fixed term or until the accomplishment of a particular undertaking. Ending early by a partner is wrong.
|
Partnership for Term
|
|
This a Partnership that is silent as to the duration. Any partner can leave without liability.
|
Partnership at Will
|
|
Just read me...
|
The Uniform Partnership Act (with RUPA amendments) is a Model Partnership statue drafted by the National Conference of Commisioners on Uniform State Laws.
|
|
Florida adopted the partnership laws of..
|
RUPA
|
|
Unless the partership agrees otherwise, they follow the RUPA rules that:
|
-Each partener has an equal vote.
-Each partner has equal rights in management and a duty to manage. |
|
T or F
Any partnership act not in the ordinay course of business must be approved by all partners. |
True
Ex. Opening a second store must be a unanimous vote. |
|
When a partner voluntarily assigns his interest in the partnership to a third party.
|
Assignment of Partnership Interest
|
|
When a partner's interest is subjected to a judgement creditor's lien.
|
Lien on Partnership's Interest
|
|
T or F
Partners usually get a set salary |
False the recieve profits or loses..
|
|
Does a partnership file taxes?
|
Yes, but it doesnt pay income tax. The parnters individually put their income or loses on the own income statement.
|
|
Partners books must be kept accessible to ________.
|
All partners
|
|
Property belongs to a partnership if:
|
-Its bought with partnership funds.
-Its Transferred to the partnerships name. |
|
Partners are in a _____ relationship with eachother.
|
Fiduciary: Trusting
|
|
A duty that a partner owes not to act adversely to the interests of the Partnership
|
Duty of Loyalty
|
|
How to break a duty of Loyalty in a Partnership...
|
-Self-deal without permission
-Compete with the partnership without permission -Make secret profits -Disclose confidential info -Misuse partnership property |
|
The obligation partners owe to use the same level of care and skill that a reasonable person in the same position would use in the same circumstances.
|
Duty of Care
|
|
_____ doesn't breach the duty of care
|
Honest Mistakes
|