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20 Cards in this Set
- Front
- Back
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sole proprietorship
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is the simplest form of business ownership by a single person; is not a legal entity; you are accepting personal liability of the business |
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proprietorship definition
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A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return
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partnership
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is an association of two or more persons who establish a business for profit as co-owners. |
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General partners
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are a personally liable for business losses and obligations and are responsible for the operation of the business.
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limited partners
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are liable for business losses only to the extent of their investment and do not participate in the operation of the business. |
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corporation
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Is a legal entity that is seen as an artificial person. |
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under a corporation who manages the business
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a board of directors manage the business and a person is legally appointed to be reasonable for the real estate activities |
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how do you know under a corporation who has legal authority? |
a licensee should ask for a copy of the corporate documents and minutes in order to identify the person that is acting on behalf of the corporation |
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what is an advantage of a corporation
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is the corporation veil that limits the liability to the assets of the corporation.
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what is an disadvantage of a corporation
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is that the profits are subject to double taxation
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under a corporation how are taxes paid
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on the profits and the share holders must pay taxes on the dividends they receive |
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security
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is created when a party joins with others in the expectation of making a profit from the efforts of others |
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securities sold interstate
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are regulated by securities and exchange commission |
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securities and exchange commission
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A government commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S.
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securities sold intrastate(within state lines)
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are regulated by blue sky laws
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blue sky laws
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the common name for those states laws that regulate the registration and sale of investment securities
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syndicate
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is formed when two or more people unite and pool their resources to own, develop, and/or operate an investment |
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joint venture
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is characterized by the intention of the parties to enter into a business relationship that is limited that is limited to a certain timeframe |
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in a joint venture what do they share
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in capitol, revenues, expenses and assets |
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REIT real estate investment trust
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the investor can avoid double taxation when certain requirements are met
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