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20 Cards in this Set

  • Front
  • Back
sole proprietorship

is the simplest form of business ownership by a single person; is not a legal entity; you are accepting personal liability of the business
proprietorship definition
A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return

is an association of two or more persons who establish a business for profit as co-owners.
General partners
are a personally liable for business losses and obligations and are responsible for the operation of the business.
limited partners

are liable for business losses only to the extent of their investment and do not participate in the operation of the business.

Is a legal entity that is seen as an artificial person.
under a corporation who manages the business

a board of directors manage the business and a person is legally appointed to be reasonable for the real estate activities

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

what is an advantage of a corporation
is the corporation veil that limits the liability to the assets of the corporation.
what is an disadvantage of a corporation
is that the profits are subject to double taxation
under a corporation how are taxes paid

on the profits and the share holders must pay taxes on the dividends they receive

is created when a party joins with others in the expectation of making a profit from the efforts of others
securities sold interstate

are regulated by securities and exchange commission
securities and exchange commission
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.
securities sold intrastate(within state lines)
are regulated by blue sky laws
blue sky laws
the common name for those states laws that regulate the registration and sale of investment securities

is formed when two or more people unite and pool their resources to own, develop, and/or operate an investment
joint venture

is characterized by the intention of the parties to enter into a business relationship that is limited that is limited to a certain timeframe
in a joint venture what do they share

in capitol, revenues, expenses and assets
REIT real estate investment trust
the investor can avoid double taxation when certain requirements are met