Podcast
Questions and Answers
What is a corporation?
What is a corporation?
- A legal entity created by law with the right of succession (correct)
- An informal business structure
- A partnership with unlimited liability
- A business organization formed by two or more individuals
What are the essential attributes of a corporation?
What are the essential attributes of a corporation?
- Sole proprietorship and unlimited powers
- Unlimited liability and informal structure
- Right of succession and authorized powers (correct)
- Limited liability and partnership agreement
How does a partnership differ from a corporation?
How does a partnership differ from a corporation?
- Corporations are informal, while partnerships are formal
- Corporations have fewer legal requirements than partnerships
- Partnerships have the right of succession, while corporations do not
- Partnerships have unlimited liability, while corporations have limited liability (correct)
What is the legal dissolution of a partnership?
What is the legal dissolution of a partnership?
What is the main purpose of the module mentioned in the text?
What is the main purpose of the module mentioned in the text?
Flashcards
What is a corporation?
What is a corporation?
A legal entity created by law that can continue indefinitely.
Essential attributes of a corporation?
Essential attributes of a corporation?
The ability to continue operating despite changes in ownership and specific legal powers to act.
Partnership vs. Corporation (Liability)
Partnership vs. Corporation (Liability)
Partnerships expose partners to unlimited liability versus corporations which offer limited liability.
Legal Dissolution of a Partnership
Legal Dissolution of a Partnership
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Purpose of the module?
Purpose of the module?
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Study Notes
Corporation Overview
- A corporation is a separate legal entity that provides limited liability to its owners, also known as shareholders.
- It is considered a legal person, with its own rights and obligations.
Essential Attributes of a Corporation
- Separate legal entity: A corporation exists independently of its owners.
- Limited liability: Shareholders' personal assets are protected from the corporation's debts and liabilities.
- Centralized management: A corporation is managed by a board of directors and officers.
- Continuous existence: A corporation continues to exist even if its owners change.
- Free transferability of ownership: Shares can be easily transferred from one owner to another.
Partnership vs Corporation
- A partnership is a business owned and operated by two or more individuals, whereas a corporation is a separate legal entity.
- In a partnership, owners (partners) have unlimited personal liability, whereas in a corporation, shareholders have limited liability.
Dissolution of a Partnership
- The legal dissolution of a partnership occurs when the partnership is terminated, and its assets are distributed among the partners.
- This can happen due to various reasons, including the death or withdrawal of a partner, or the expiration of the partnership agreement.
Module Purpose
- The main purpose of this module is to introduce the concept of corporations and partnerships, highlighting their key characteristics, advantages, and differences.
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