Business Law 2 Chapter 26 Vocabulary

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Legal entity treated as an artificial person by the law and created by the authority of federal or state law.
Step in termination of a partnership that precedes the winding-up process; also, term for divorce or the ending of a marriage in some states.
Dormant Partner
Partner neither known to the public nor active in management.
General Partner
Assumes full personal liability for debts of the firm.
General Partnership
All partners assume full liability for debts of the firm.
Joint Venture
Partnership formed by two or more persons or firms combining resources and skills for one complex project.
Limited Partner
Partner whose potential liability is restricted to his or her investment in the partnership.
Limited Partnership
Partnership form authorized by state statute requiring at least one general partner but allowing limited liability for the rest.
Nominal Partner
Person who is not a partner but who is held out as much.
Non-trading Partnership
Partnership that provides professional and noncommercial assistance or advice.
Association of two or more persons, as co-owners, to carry on a business for profit.
Partnership Agreement
Explicit statement, orally or in writing, of the terms and conditions agreed to by the partners for running the partnership.
Partnership At Will
Partnership in which a partner may withdraw at any time without liability to other partners.
Secret Partner
Partner not known to the public but active as a manager.
Silent Partner
Partner known to the public but who takes no active managerial role.
Sole Prorietorship
Form of business owned by one person who has total unlimited control and liability.
Tenancy in Partnership
Form of co-ownership by which the partners hold partnership property.
Following the winding-up process, the ending of the legal existence of the partnership.
Trading Partnership
Partnership that buys and sells goods and services commercially.
Winding-up Period
Period following dissolution in which the ongoing business of the partnership is concluded, its obligations are satisfied, and each partner’s share is distributed.
Categories: Business Law