Wiley CPAexcel Exam Review 2014 Study Guide, Regulation

Module 25: Business Structure

Overview

A sole proprietorship has only one owner, which creates both advantages and disadvantages. A partnership is an association of two or more persons to carry on a business as co-owners for profit. The major areas tested about partnerships are the characteristics of a partnership, comparisons with other structures, rights and liabilities of the partnership itself, the rights, duties, and liabilities of the partners among themselves and to third parties, the allocation of profits and losses, and the rights of various parties, including creditors, upon dissolution.

A. Nature of Sole Proprietorships

B. Nature of Partnerships

C. Formation of Partnership

D. Partners’ Rights and Operation of Partnership

E. Relationship to Third Parties

F. Termination of a Partnership

G. Limited Partnerships

H. Joint Ventures

I. Limited Liability Companies (LLC)

J. Limited Liability Partnerships (LLP)

K. Subchapter C Corporations

L. Characteristics and Advantages of Corporate Form

M. Disadvantages of Corporate Business Structure

N. Types of Corporations

O. Formation of Corporation

P. Corporate Financial Structure

Q. Powers and Liabilities of Corporation

R. Directors and Officers of Corporations

S. Stockholder’s Rights

T. Stockholder’s Liability

U. Substantial Change in Corporate Structure

V. Subchapter S Corporation

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulation

Simulation Solution

The law of joint ventures is similar to that ...