Question

Describe the distinctions between lost, abandoned, and mislaid property. Give an example of each.

Explain the major characteristics of a corporation and what fiduciary duties, if any, the shareholders in a corporation possess.

Describe the three main types of business forms or business structures commonly used, and detail the tax implications of each.

Explain adverse possession and describe the acronym that is commonly used to remember the elements of the concept.

Sam Superstar wants to buy a house in his name. What types of deeds are available for an owner to obtain? What is worst type of deed for a new homeowner to obtain and why?

Answer 1

Answer (1): A lost property indicates that the property has been owned by somebody in the past. When the lost property is found by somebody else, then the property is categorized as one of the three (lost, abandoned and mislead) based on the law of property pertaining to the local area. When a property is unwillingly left as unnoticed by the owner of the property, it is referred to as a lost property. For example, if a person vacates a property and forgot a washing machine in the property, then the washing machine would be termed as a lost property.

                                        When an owner willingly or intentionally leaves a property unnoticed for reasons which is justifiable to him, then the property is referred to as abandoned property. For example, if a person vacates a property and willingly leaves behind a poor working or a broken car in the property, then the car would be termed as an abandoned property.

                                        When an owner leaves a property noticed with a plan to work on it or make use of it in the future but forgets to work or make use of the property, then the property is referred to a mislaid property. For example, if a person vacates a property and willingly leaves behind a car as it was too many items to vacate at one go and planned to take the car later on, but forgets about the car in the long run, then the car would be termed as a mislaid property.

Answer (2): Corporations act more or less like an individual. Corporations possess several characteristics such as shares, quorum members, articles of incorporation, bylaws, and shareholders. A corporation possesses its own separate legal powers and shareholders are the owners of it. The shareholders keep on contributing to the life span of a corporation by buying its shares. However, the shareholders, although are considered as the financial backbone of the company, they do possess any fiduciary powers or responsibility

  Answer (3): Business forms consist of three primary types: Partnership, sole proprietorship and corporation. Partnership refers to the business structure where more than one or multiple partners join together to start and run a business. Sole proprietorship refers to when only one individual owns a business or firm, he is the sole proprietor. Corporation refers to a separate legal entity which is considered to be a separate entity, however, it possesses many more powers as compared to an individual.