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11 Cards in this Set
- Front
- Back
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Agency
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One who acts for or represents another
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Principal
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The person for whom an agent acts
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Sole Proprietorship
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Business owned and operated by one person
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General Partnership
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A voluntary association of two or more persons who agree to carry on business for profit
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Agency by Estoppel
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An agency arising from acts that lead others to believe an agency relationship exits
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Fiduciary Duties
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Duty to act in utmost good faith and fair dealing
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Partnership at Will
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A partnership with no specific term of duration
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Winding Up
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Wrapping up business affairs, terminating business, satisfying obligations, selling assets and collection debts
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Marshalling of Assets
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Partnership theory requiring creditors to first exhaust partnership assets before pursuing partners' individual assets
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Advantages of Sole Proprietorship
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easy to form, inexpensive to form, owner is sole decision maker, management is informal and flexible
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Disadvantages of Sole Proprietorship
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unlimited personal liablilty, limited ways of raising capital, lack of continuity, possible lack of expertise in management
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