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Chapter 5 - Key Terms

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Question
Answer
community property   a form of co-ownership between husband and wife in which each has a one-half interest in property acquired through the labor of either during marriage (page 85)  
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co-ownership   ownership of real estate in which two or more people have undivided interests (page 79)  
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corporation   desirable business association as an investment vehicle because the investors (stockholders) enjoy limited liability (page 88)  
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fiduciary duty   a trustee's responsibility to act solely in the best interests of the owner or beneficiary of the trust (page 95)  
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joint tenancy   co-ownership in which the entire estate passes to the survivor on the death of the other joint tenant or tenants (page 79)  
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joint venture   a business entity in which two or more persons agree to carry out a single undertaking for profit (page 93)  
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limited liability company   a business entity that resembles and is usually taxed like a partnership, but offers the advantages of limited liability for the owners, like a corporation (page 89)  
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limited partnership   A partnership formed according to the provisions of a state limited partnership act. The liability of a limited partner is limited to the amount invested. (page 89)  
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partition   A legal action in which a co-owner obtains a division of real property, terminating any interest of the co-owners in the divided portion. Each former co-owner's share is now owned individually. (page 82)  
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partnership   an association of two or more persons to organize a business venture and divide the profits (page 89)  
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real estate syndicate   a group of investors who combine funds and managerial resources to develop, manage, or purchase real estate for a profit or as a tax shelter (page 88)  
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S corporation   a corporation that has elected to be treated as a partnership for tax purposes (page 89)  
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tenancy by the entirety   Co-ownership of real property by husband and wife. The right of survivorship is a characteristic of a tenancy by the entirety (page 83)  
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tenancy in common   A form of co-ownership in which each owner possesses an undivided right to the entire property. Shares of co-owners need not be equal, and no right of survivorship exists (page 84)  
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tenancy in partnership   a form of co-ownership in which each partner owns partnership property along with all other partners (page 84)  
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trust   a legal relationship in which a person transfers legal title to property to a trustee who manages it for the beneficiaries of the trust (page 94)  
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