Flashcards
Chapter 27 Vocab
Cards in this deck (18)
- 1PartnershipAn agreement by two or more persons to act as co-owners of a business for profit
- 2Pass-Through EntityA business entity that has no tax liability. The business income is passed onto owners and reported on 1040
- 3Information ReturnA tax return that reports the income and loss of partnership (1065, no taxes paid on this)
- 4Articles of PartnershipAn agreement that sets forth each partner's rights and obligation in relation to the partnership
- 5Partnership by EstoppelA partnership imposed by a court when a non partners as like a partner and a third party relies on this
- 6Charging OrderA granted order by a court that entitles a creditor to a partner's interest in a partnership
- 7Joint LiabilityShared liability for partnership obligations and debts. Third party must sue all of the partners as a group. (each partner can be held liable for the full amount)
- 8Joint and Several LiabilityA plaintiff may sue and collect from all partners together (jointly) or one or more partners separately (several). A partner can be held liable even if they didn't participate or know of conduct.
- 9Dissociationpartner leaves partnership
- 10Buyout PriceAmount payable to partner upon dissociation
- 11DissolutionFormal disbanding of a partnership. Can be dissolved by acts of partners, operation of law, or judicial decree
- 12Winding upSecond of two stages in termination of a partnership where the assets are collected, liquidated, and distributed
- 13Buy-Sell AgreementAgreement that one or more partners can buy out the others in the event the firm is dissolved. (buy-out agreement)
- 14Limited Liability Partnership (LLP)Mainly used by professionals (CPAs). A pass-through entity but a partner's personal liability for malpractice of partners is limited
- 15Limited Partnership (LP)A partnership consisting of one or more general partners and one or more limited partners
- 16General PartnerA partner who assumes responsibility for management and has full limited for all partnership debts
- 17Limited PartnerA partner who contributes capital but has no right to participate in management and has limited liability
- 18Certificate of Limited PartnershipThe document that must be filed with a designated state official to form a limited partnership
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- final BLAW Flashcards on Chapter 27 Vocab, created by Megan Martinez on 25/09/2019.
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- Megan Martinez
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