ADMS 3920 Chapter Notes - Chapter 10: Oral Contract, Exclusive Dealing, Canadian Intellectual Property Office

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pucewildebeest131

29 Sep 2013

School

York University

Department

Administrative Studies

Course

ADMS 3920

Professor

all

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Document Summary

Forms of organization: the soles proprietorship option - is a business owned by one person. The business owner receives all the profits, but is also subject to unlimited liability. The death of an owner terminates the legal existence of a business. Partners share the profits and are also subject to unlimited liability. Partnership should be formed only it if is the best option when all matters are considered. The following questions should be asked before creating a partnership: What is our business concept? (roles of the partners and how business will be done?) How are we going to structure ownership? (share ownership between the partners) How do our lifestyles differ? (family, single?) Partnership agreement a document that states explicitly the rights and duties of partners. Agency power the ability of any one partner to legally bind the other partners. Death, incapacity, or withdrawal of any one partner ends a partnership and necessitates liquidation or reorganization of the business.

Related Questions

Match Column A with Column B

1) Partnership	a) a business owned by one person who is personally liable for all losses
2) Proprietorship	b) An artificial being created by a state
3) Limited partnership	c) two or more persons combine their efforts for a single transaction
4) Corporation	d) created when shareholders elect to be treates as partners for tax purposes
5) legal capacity	e) created by an agreement between two or more persons who agree to share profits and losses
6) buy-and-sell agreement	f) provides for compensation to a deceased or withdrawing owner of a business in return for that owners interest.
7) Subchapter S corporation	g) the ability of an organization to sue or to own property
8) joint venture	h) exists when some partners are treated like shareholders for liability purposes
9) limited liability company	i) tax doctine that allows income to be taxed at the owner level, not the organization level
10) "pass through"	j) owners recieve limited liability and tax treatment as if they were a partnership without filing as a corporation.

Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.

In which of the following financial statements would a retained earnings account be found?

Select one:

a. Sole trader.

b. Company.

c. Partnership.

d. None of the options shown would contain a retained earnings account.

A partnership of three siblings would have how many capital accounts in the equity section of the balance sheet?

Select one:

a. One.

b. Two.

c. Three.

d. None.

Which of the following is an advantage of being a sole trader?

Select one:

a. The owner has total autonomy over business decisions.

b. The business is not a separate legal entity.

c. The owner has unlimited liability.

d. The business has limited life.

Partnerships should always have a Partnership Agreement in place to avoid potential disagreements.

Select one:

True

False

If a partner in a partnership decides to leave or retire from the business, the partnership can continue on with no disruption or administrative changes.

Select one:

True

False

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ADMS 3920 Chapter Notes - Chapter 10: Oral Contract, Exclusive Dealing, Canadian Intellectual Property Office

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