The legal form of a debtor’s business may represent a key risk factor for creditors. Consequently, it is important that credit professionals understand the different forms of business, particularly as they affect the rights of creditors and debtors. State laws primarily govern the legal forms of business. For details of how the topics in this chapter relate to each state, consult the NACM Manual of Credit and Commercial Laws.
After viewing this module, students should understand:
- The importance of the customer’s legal form of organization in credit decisions.
- The major features of proprietorship.
- The different type of partnerships.
- The major features of corporate organizations.
- The major features of S corporations.
- The major features of limited companies, estates, common law trusts, joint. ventures, cooperative societies and non-profits.
- Other features of organizations that are relevant to credit professionals.
Toni Drake brings over 30 years of oil and gas credit experience to the table. Toni holds a CCE, NACM’s most prestigious designation. After earning her CCE, she went on to attend and excel at NACM’s Graduate School of Credit and Financial Management to further her education in the field of credit. Toni continues to support the credit profession as a speaker and instructor at events like NACM’s annual Credit Congress.