5 Questions
What is the SCM?
A legal entity that allows its partners to share expenses
What is the responsibility of all partners in the SCM?
They have unlimited liability for their personal assets
What does the SCM preserve?
The independence of its members
What is required for a company to be run democratically?
A majority of the members must agree to make decisions
What is an option for one of the partners in the SCM?
They can appoint a sole manager with full powers
Study Notes
- The SCM is a legal entity that allows its partners to share expenses and independently manage their clients or patients.
- The SCM preserves the independence of its members and does not require a minimum capital investment.
- All partners have unlimited liability and are responsible for their personal assets.
- The SCM requires a certain level of formalism in order to function effectively, such as a joint decision-making process.
- In order for a company to be run democratically, a majority of the members must agree to make decisions.
- Formalism often ensures the soundness of decisions and the financial health of the company.
- If one of the partners trusts them to manage everything, the option of a sole manager with full powers is also possible.
Test your knowledge about Shared Capital Management (SCM) with this quiz. Learn about the legal entity that allows partners to share expenses, the level of formalism required for effective functioning, decision-making process, and more.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
