Sole Proprietors
A business managed or owned by a single person.
Business organizations owned by two or more people who agree on specific divisions of profits and responsibilities.
Partnerships
A legal entity owned by stockholders who all have limited liability.
Corporations
Type of business that is operated using a brand that has already been established for a fee.
Franchise
This partnership was NOT initially planned as an ice cream shop; the founders originally wanted to open a bagel company.
Ben & Jerry's
Give an example of a sole proprietorship.
Various Answers
Partners share equally in profits and responsibility.
General partnerships
What percentage of sales do corporations generate?
What is 90%
The word "conglomerate" comes from the Latin verb conglomerare, which means ______________.
"To roll together"
This LLC was originally named "BackRub" during its initial development phase at Stanford University in 1996.
What is Google
List the 2 advantages of a sole proprietorship.
1. Ease of start-up
2. Very few regulations
3. Sole receiver of profits.
4. Full control
5. Easy to discontinue
One partner is liable for everything and the other just provides capital.
Limited Partnerships
Privately held corporations.
Nonprofits
This Publicly Traded Corporation is the most recognized logo in the world (roughly 94% of all people across the world know the logo)
What is Coca-Cola
List the 2 disadvantages of a sole proprietorship.
1. Unlimited personal liability
2. Limited access to resources
3. Lack of permanence.
All partners are limited from personal liability in certain situations.
Limited Liability Partnerships
Corporations that are publicly traded (you can buy stock in them).
Public Corporations
When businesses selling the same product combine to limit competition.
What is Horizontal Mergers
What is Royalties
This American chain of department stores and online retailer was started as a Sole Proprietor
Sears
What percentage of all sales in the us do partnerships generate?
What is 5%
What are 4 advantages or disadvantages of corporations.
Advantages:
1. Limited Liability
2. Transferable Ownership
3. Ability to attract capital
4. Long life
Disadvantages
1. Expense
2. Double taxation
3. Potential loss of control
4. More legal requirements
When businesses combine so they can control the production phases of their product.
Vertical Mergers
This franchise uses round tables in its cafes so customers feel less alone and notice empty seats less.
What is Starbucks