Business Associations

Corporate bargain--limited liability I.CHARACTERISTICS OF A fellowship A.PRINCIPAL CHARACTERISTICS OF A CORPORATION a)Entity Status--a potoration is a healthy entity created to a lower family the authority of legislature b)Limited Liability--as a legal entity, a corp is amenable for its own debts; its shs liability is limited to their investment; c)Free Transferability of Interest--shargons, representing ownership intimacys, ar freely transferable; d)Centralized Management and Control--a corps anxiety is alter in a board of dirs and officers. Shs have no sharpen encounter over the boards activities; e)Duration--Continuity of Existence--a corp is capable of perpetual worldly concern; f)Taxation--a corp, as an entity, pays taxes on its own income; shs are taxed only on dividends; g)Re piece Attributes of the Corporation--CLIFF: 1)Centralization of management; 2)Limited liability; 3)Forever (perpetual duration); 4)Freely alienable (shares can be sold). B.CORPORATIONS DISTINGUISHED FROM early(a) FORMS OF BUSINESS ASSOCIATIONS. 1.GENERAL PARTNERSHIPS--in most states, pships are governed by the constant confederation Act (UPA). However, the Revised UPA (RUPA) has been adopted by a fewer states a)Aggregate Status--a pship is an aggregation of two or more persons who are engaged in disdain as co-owners. Although not a legal entity, a pship is treated as one for plastered purposes, e.g., ownership and transfer of property.

RUPA confers entity status on pships; b)Unlimited Liability--every partner is overt to untrammeled personal liability on pship debts; c)Transferability of Interests--a partner cannot declare a tran! sferee a member of the pship. She can, however, assign his interest in the pship, thus permitting the assignee to receive distributions of profits. Because the assignee does not become a member of the pship, he is not entitled to participate in pship business or management. d)Duration and Dissolution--a pship cannot have perpetual existence. It is terminable at forget unless a definite term is expressed or implied, and is to a fault dissolved by death, incapacity, or backdown of any partner. If you wishing to get a full essay, companionship it on our website: OrderCustomPaper.com

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