(Q4) Sole Proprietorship, Partnerships, Corporations

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Total cards: 24•Content version: v4•Public deck•Updated: 8/1/2026

Card preview (24)

Front (Question)

Sole Proprietorship

Back (Answer)

• One person as owner • Not a partnership or corporation

Front (Question)

Partnership

Back (Answer)

Association of two or more people to carry on a business for profit

Front (Question)

General Partnership

Back (Answer)

• Most common form of partnership • Created under the Uniform Partnership Act (UPA) • Partnership ownership is tendency in common

Front (Question)

Limited Partnership

Back (Answer)

• At least one partner is limited as to their liability

Front (Question)

Trading Partnership

Back (Answer)

Deals in goods ex. casket manufacturer

Front (Question)

Non-Trading Partnerships

Back (Answer)

• Deals in services • funeral homes are considered non-trading partnerships

Front (Question)

Uniform Partnership Act (UPA)

Back (Answer)

• Governs the creation, operation, and termination of partnerships • adopted in most states

Front (Question)

General Partnership

Back (Answer)

Created under the UPA

Front (Question)

Limited Partnership

Back (Answer)

• Limited as to liability • state must have a limited partnership act

#10

Front (Question)

Secret Partnership

Back (Answer)

• Partner is not known to the public but has a voice in management

#11

Front (Question)

Silent Partner

Back (Answer)

• Partner is known to the public and has a voice in management ex. Elon Musk and Twitter

#12

Front (Question)

Dormant Partner

Back (Answer)

Combination of both silent and secret partner

#13

Front (Question)

Nominal Partner

Back (Answer)

• Partner in name only. • Known to the public and has no voice in management

#14

Front (Question)

Liability of Partners

Back (Answer)

Fiduciary relationship (a relationship of trust)

#15

Front (Question)

Contract Liability

Back (Answer)

Completely liable if partner is acting within the scope of partnership business

#16

Front (Question)

Tort Liability

Back (Answer)

Completely liable but if the other partner commits a tort, he must reimburse partnership for loss

#17

Front (Question)

Joint Stock Company

Back (Answer)

Ownership is evidenced by shares of stock, but have unlimited liability

#18

Front (Question)

Joint Venture

Back (Answer)

Partnership for only one specific transaction

#19

Front (Question)

Liability of Limited Liability Company or Partnership

Back (Answer)

Limited as to liability like a corporation - has “flow through taxation” like a partnership - Partnership does not pay taxes, but each partner does

#20

Front (Question)

Creation of Partnership

Back (Answer)

• By agreement (contractual relationship) • By estoppel

#21

Front (Question)

Dissolution of Partnership

Back (Answer)

• If a partner leaves for whatever reason • If the partners all decide to close

#22

Front (Question)

Effect of Dissolution

Back (Answer)

Termination of a partnership but the remaining partners can form a new partnership

#23

Front (Question)

Corporation

Back (Answer)

An entity formed by individuals on a business for or not for profit, to adopt a corporate name, and to change it’s members without dissolution

#24

Front (Question)

Classifications of Corporations

Back (Answer)

• Public Corporation (can be governmental or private) • Close Corporation (limited number of shareholders) • Domestic Corporation (foreign/alien) • Promoters (prepare articles of incorporation: file with the state and appoint a board of directors)