LGS exam 3 vocab

What is a Shareholder's Derivative Suit

• A legal action by a corporation against its shareholders for profit.
• A lawsuit from a shareholder to enforce a corporate cause of action against a third party.

• A legal complaint initiated by a third party on behalf of the shareholders.
• A lawsuit filed by a shareholder against the corporation itself for personal gain.

what is the Articles of Partnership

•  A Legal written agreement setting forth the rights and obligations of a partnership

• A list of partners' personal assets.
• A document for registering a business name.
• A summary of partnership profits and losses.

what is the Buy-Sell Agreement

• A Buy-Sell Agreement is a marketing strategy for increasing sales.
• A Buy-Sell Agreement is an express contract where a partner (or partners) agree to buy out another in the event of a partners death, departure, or removal from the partnership

• A Buy-Sell Agreement is a type of insurance policy.
• A Buy-Sell Agreement is a government regulation on business sales.

What is Buyout Price in a partnership

• The amount payable to a partner upon their departure from the partnership. Based on their share of the firm, offset by any damages caused from dissociation

• The amount to buy the business

• The buyout price is the total profit earned by the partnership.
• The buyout price is the market value of the partnership's assets.

What is Charging Order in a partnership law

• A legal document outlining partnership responsibilities.
• A type of partnership agreement for new businesses.
•  A court order which entitles a creditor to recover their due from a partner's interest in the partnership

• A method for distributing profits among partners.

What is Dissociation in business law

• Dissociation is the separation of a partner from their partnership or member from their LLC

• Dissociation is the legal term for a business bankruptcy.
• Dissociation refers to the merger of two companies.
• Dissociation is the process of forming a new partnership.

what is Dissolution in business law

• Dissolution is the process of merging two businesses together.
• The formal disbanding of a partnership, corporation, or other business entity

• Dissolution refers to the temporary suspension of business operations.
• Dissolution is the act of increasing a business's assets.

What is a entrepreneur

• A person who only invests in stocks
• Someone who works for a large corporation
• Someone who starts their own business

• An individual who manages and assumes the risks of a new business

What is a franchise

• A franchise is the licensing of another to sell goods or services by the owner of - and with the use of - a trademark, trade name, or copyright

• A franchise is a legal agreement to sell products exclusively in a region.
• A franchise is a government program for small businesses.
• A franchise is a type of investment that guarantees profits.

What is a Franchisee

• A company that creates new franchises without a brand affiliation.
• An individual who provides financial support to a business.
• The party receiving rights sell goods or services using another's trademark, trade name, or copyright

• A person who owns a brand and sells it to others.