Chapter 41-42 Business Law 2

Front 1

Sole or individual proprietorship:

Back 1

form of business ownership in which one individual owns the business

Front 2

Partnership

Back 2

: pooling of capital resources and the business or professional talents of two or more individual (Partners) with the goal of making a profit.

Front 3

Limited Liability Partnership (LLP):

Back 3

partnership in which at least one partner has a liability limited to the loss of the capital contribution made

Front 4

Limited Liability Company (LLC)

Back 4

a partnership for federal tax treatment and the limited liability feature of the corporate form of business organization

Front 5

Corporation

Back 5

artificial being created by government grant, which for many purposes is treated as a natural person.

Front 6

Join venture

Back 6

relationship in which two or more persons or firms combine their labor or property for a single undertaking and share profits and losses equally unless otherwise agreed

Front 7

Franchise:

Back 7

privilege or authorization, generally exclusive, to engage in a particular activity within a particular geographic area, such as a government franchise to operate a taxi company whit in a specified city or a private franchise as the grant by a manufacturer of a right to sell product with in a particular territory or for a particular number of years

Front 8

Franchisor

Back 8

party granting the franchise

Front 9

Franchisee

Back 9

: person to whom franchise is granted

Front 10

Franchise Agreement

Back 10

sets forth rights of franchisee to use trademarks, etc., of franchise

Front 11

Trademark

Back 11

mark that identifies a product

Front 12

Trade name

Back 12

mark that identifies a product

Front 13

Trade dress

Back 13

products total image including its overall packaging look.

Front 14

Trade secret

Back 14

formula device, or compilation of information that is used in one’s business and is of such a nature that it provides an advantage over competitors who do not have the information

Front 15

Franchise Rule

Back 15

FTC rule requiring detailed disclosures and prohibiting certain practices.

Front 16

Partnership:

Back 16

pooling of capital resources and the business or professional talents of two or more individuals with the goal of making a profit

Front 17

General Partnership

Back 17

partnership in which the partners conduct as co-owners a business of profit, and each partner has a right to take part in the management of the business and has unlimited liability

Front 18

Partner

Back 18

one of two or more persons who jointly own and carry on a business for profit

Front 19

General partners

Back 19

partners who publicly and actively engage in the transaction of firm business

Front 20

Unincorporated association

Back 20

combination of two or more persons for the furtherance of a common nonprofit purpose

Front 21

Partnership agreement

Back 21

document prepared to evidence the contract of the parties (Parties – partners or general partners)

Front 22

Tenancy in partnership

Back 22

ownership relationship that exists between partners under the Uniform Partnership Act.

Front 23

Charging order

Back 23

order by a court, after a business partner’s personal assets are exhausted, requiring that the partner’s share of the profits be paid to a creditor until the debts is discharged

Front 24

Express authority

Back 24

authority of an agent to perform a certain act

Front 25

Joint liability

Back 25

apportions partner’s responsibility for partnership debt equally

Front 26

Joint and several liabilities

Back 26

disproportionate satisfaction of partnership debt rendering each partner liable for the entire debt with the right to contribution from other partners.

Front 27

Operation of law

Back 27

attaching of certain consequences to certain facts because of legal principles that operate automatically, as contrasted with consequences that arise because of the voluntary action of a party designed to create those consequences.