BA 101 Lecture Notes - Lecture 10: Limited Partnership, Preferred Stock, Common Stock
25 Jul 2018
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Mutual agency: the right of all partners in a partnership to act as agents for the normal business operations of the partnership, with the authority to bind it to business agreements. No mutual agency: can decide who can make official decisions. Do not share the risk / wealth equally. True because someone dies even if they worked well together. A corporation is a separate entity: there is no single individual that is responsible and that makes the government nervous! Full disclosure - due diligence has to be thorough in finding and reporting information. Domestic corporations: operate in state in which it is incorporated. Foreign corporation: operate in states other than their state of incorporation. Alien corporation: are organized in one country and operate in another. First claim on income - preferred dividend. Unlimited life restrictions: number & type of shareholders.
