CH 3 Hospitality Business Structures – Flashcards
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REIT
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Short for "real estate investment trust," a very special form of business structures in which the owners of a business are generally prohibited from operating it
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General Partner
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The entity in a limited partnership relationship who makes the management decisions and can be held responsible for all debts and legal obligations.
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Limited Partner
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The entity in a limited partnership relationship who is liable only to the extent of his or her investment. Limited partners have no right to manage the partnership claims against the business.
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S Corporation
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A type of business entity that offers liability protection to its owners, and is exempt from corporate taxation on its profits. Some restrictions limit the circumstances under which it can be formed.
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Owner-Operator
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A type of operating structure in which the owners of a business are directly responsible for its day-to-day operation. Also known, in some cases, as an "independent."
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A legal document that details the specifics of a license.
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Licence Agreement
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Legal permission to do a certain thing or operate in a certain way.
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License
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An entity that, for a fee, assumes responsibility for the day-to-day operation of a business.
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Management Company
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The legal agreement that defines the responsibilities of a business owner and the management company chosen to operate the owner's business
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Management Contract
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fractional ownership
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a purchase arrangement in which a condominium owner purchases the use of his or her unit for a fraction of the year.
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(CHOA)
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Condo hotel owners' association
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A person authorized to act for or to represent another, usually referred to as the principal.
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Agent
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Respondeat Superior
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Literally; "let the master respond," a legal theory that holds the employer (master) responsible for the acts of the employee.
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Fiduciary Responsibility
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The requirement that agents act in the best interests of their principals.
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Independent Contractor
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A person or entity that contracts with another to perform a particular task, but whose work is not directed or controlled by the hiring party.
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T/F The highest risk/ reward is when you have a sole proprietorship.
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True
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T/F In the law a corporation is a person.
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FALSE
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T/F In the law a corporation is NOT a person.
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True
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T/F OSHA's mission is to protect the employer.
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FALSE employee not employer
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T/F MSDS sheets are available in spanish.
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True
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T/F Federal Wage trumps state law.
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FALSE, whatever is higher
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T/F A limited parter has the same exposure as a general partner.
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FALSE General Partner- (in a limited partnership) can be held responsible for all debts and legal obligations. Limited Partner- (in a limited partnership) is liable only to the extent of his or her investment.
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"Quid Pro Quo" literally means _______________.
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This for that
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Dram Laws deal with the serving of _________________.
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Alcohol
