week 7 - Ch. 20 What are the various forms of business...

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Ch. 20 What are the various forms of business organization? Sole proprietorship—individual ownership and operation of a business Partnership—voluntary association of two or more persons as co-owners in a business for profit Corporation—an entity formed by statute that has the rights of a legal person along with limited liability for its shareholder owners Limited liability company—newer form of business organization in which liability is limited except for conduct that is illegal Limited liability partnership—newest form of business organization, in which partners’ liability is limited How is a partnership formed and operated? Uniform Partnership Act (UPA)—law on partnerships adopted in 49 states Revised Uniform Partnership Act (RUPA)—update of partnership law Partnership by implication—creation of a partnership by parties’ conduct Partnership by estoppel—partnership that arises by perception of third parties of its existence Dissolution—when partner ceases to be associated with the partnership Limited partnership—partnership with two types of partners: general and limited General partner—full and personal liability partner Limited partner—partner whose personal liability is limited to capital contributions Uniform Limited Partnership Act (ULPA)—uniform law adopted in nearly every state Revised Uniform Limited Partnership Act (RULPA)—update of limited partnership law Advances—partners’ loans to partnership How is a corporation formed and operated? Corporation—business organization that is a separate entity with limited liability and full transferability Domestic corporation—a corporation is domestic in the state in which its incorporation is filed
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week 7 - Ch. 20 What are the various forms of business...

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