Smashwords Edition
BUSINESS CONTINUATION INSURANCE
2nd Edition
CAL-STATE EXAMS
5059 Newport Avenue, #209
San Diego, CA 92107
Telephone: (619) 222-2425
Copyright © 2010-1991 REAL ESTATE LICENSE SERVICES, INC. Copyright registered. All rights reserved. No part of this material may be reprinted, reproduced, transmitted, stored in a retrieval system, placed in a computer or on the Internet, or otherwise utilized, in any form or by any means electronic or mechanical, including photocopying or recording, now existing or hereinafter invented, nor may any part of this course be used for teaching without permission from the copyright holder. CAL-STATE EXAMS is a division of REAL ESTATE LICENSE SERVICES, INC., holder of the registered copyright.
TABLE OF CONTENTS
General Information About Sole Proprietorships
Definitions - Property Rights and Liabilities - Advantages and Disadvantages
Termination of a Sole Proprietorship
Causes of Termination - Economic Effects of Termination
Continuation of the Business Without Proper Authority
Problems Associated with the Continuation of the Business Without Proper Authority
Continuation Plans Made by the Proprietor Acting Alone
Legality - Will Provisions - Disadvantages - Hazards - Specific Bequests - Business Property
Agreements Between the Proprietor and Others for Continuation of the Business
Types of Agreements - Desirability - Financing the Agreement
Specific Benefits of the Insured Buy-Sell Agreement
Benefit to Employees - Benefit to the Estate and Heirs - Benefit to the Proprietor
Contents of the Buy-Sell Agreement with Life Insurance
Drawing up the Agreement - Similar Patterns - Contents of the Agreement
General Information About Partnerships
Definitions - Formation - Types
Property Rights and Liabilities in a Partnership
Ownership of Assets - Partnership Interest - Management Rights - Role of the Partners - Corporate Property Compared - Liabilities
Definitions - Reasons for Dissolution - Effects of Dissolution
Winding up and Termination of the Partnership on Death of a Partner
Role of Liquidating Trustee Economic Effects
Alternatives to Liquidation Improvised After a Partner's Death
Problems - Heirs as Partners - Drawbacks - Obstacles
Alternatives to Liquidation Set Up Prior to a Partner's Death
One Partner Acting Alone - Partners Acting Together - Example of Agreement - Court Validity - Survivorship Agreements - Financing
The Insured Buy-Sell Agreement – General Considerations
Life Insurance - Specific Performance
Specific Benefits of the Buy-Sell Agreement with Life Insurance
Benefit to Surviving Partners - Benefit to the Estate and Heirs - Benefit During Partners' Lifetime
Selecting the Type of Agreement
Types - Determination Factors
Contents of the Buy-Sell Agreement with Life Insurance
Drawing up the Agreement - Essential Elements - Financing with Life Insurance - Other Provisions
General Information About Corporations
Definitions - Formation - Types