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;
39 Cards in this Set
- Front
- Back
Liability
|
A legal right that can be enforced by and against a person through the court process which can result in a court remedy
|
|
Sole Proprietorship
|
An unincorporated business owned by a single individual
|
|
Creditor Proof Assets
|
Assets creditors can’t attack e.g. Insurance/RRSPs
|
|
Cooperatives
|
Designed to provide their members with goods or services at a cost lower than the cost of similar goods and services in the market place
|
|
Participatory Democracy
|
Each member has one vote regardless of the number of shares held and the capital contributed
|
|
Partnerships
|
The relation which subsists between persons carrying on a business in common with the view of profit
|
|
Partnership by estoppel
|
Precluded from denying
|
|
Agent
|
A person acting for another in contractual relations with 3rd parties
|
|
Principal
|
The person whose behalf the agent acts
|
|
Exclusive Listing Agreement
|
An agreement by the client of a real estate agent to pay commission on any sale of a property whether it is sold by the client, the agent or some other agent
|
|
Jointly and Severally Liable
|
Creditors can collect amount owed from any of partners
|
|
Implied terms of the Partnership Act
|
a term that does not exist in a contract but nevertheless the courts will insert it into the contract even though the parties never agreed to it
|
|
Limited Partnership
|
A partnership in which some of the partners limit their liability to the amount of their capital contributions
|
|
Limited Liability Partnership (LLP)
|
Partnerships in which non-negligent partners are not personally liable for losses caused by the negligence of a partner
|
|
Limited Partners
|
May have liability limited to the amount paid by each of them to the Limited Partnership as capital
|
|
General Partners
|
Are subjected to the unlimited partnership principles, have unlimited liability
|
|
Corporation
|
A separate legal entity that carries on business through human agents
|
|
Limited Liability
|
only liable to lose his/her investment and the amount of the price of the shares for which he/she has not paid
|
|
Frozen Out
|
Do not have sufficient voting privileges to get on the board of directors, won’t be able to realistically participate in management
|
|
Locked in
|
Impossible to sell shares, no one wants to step in the shoes of minority shareholders
|
|
Piercing the Corporate Veil
|
Lifting the notion that the corporation is a separate identity
|
|
Royal Charter
|
Using the royal prerogative to incorporate
|
|
Special Acts
|
Passed by parliament to create corporate body
|
|
General Acts
|
routine method of creating a company
|
|
Certificate of Incorporation
|
most prominent method of incorporation
|
|
Bylaws
|
provide regulation for the general governance of a corporation
|
|
Directors
|
Managers of the corporation
|
|
Officers
|
Elected by Board of Directors
|
|
Shareholders
|
Investors
|
|
Common Shareholders
|
Have the rights to vote and no pre-determined dividend rate
|
|
Preferred Shareholders
|
Do not vote, ranked ahead of common shareholders if surplus
|
|
Secure Creditors
|
Lend the company money, security in assets of company
|
|
Apparent Authority
|
An agent may acquire apparent authority from a past manner of transacting business, business by principal or trade custom
|
|
Holding Out
|
Representing yourself or allowing someone to represent you
|
|
Gatekeeper Liabilities
|
the attempt to control wrong doing of companies by making the directors liable through duties
|
|
Derivative action
|
Shareholder can sue board of directors in the name of the company
|
|
Fundamental Changes
|
Need 75% majority in each class of shares
|
|
Oppression Remedies
|
If you can show you are oppressed and treated unfairly, the court can implement an open-ended remedy
|
|
Shot gun Clause
|
Offer partner to buy out or you buy them out
|