Vocab
Costs associated with beginning a business
Startup Costs
Weekly or monthly payments made by the local owner to the franchise company.
Royalty fees
A business owned by an individual
Sole proprietorship
States that it is illegal for a business to require a customer to purchase one good in order to be able to purchase another
Clayton Act
States that names, symbols, or special marks that distinguish certain businesses can be used only by the business
Trademark laws
Owners of a corporation are known as this.
Stockholder
Dividends
A business owned by two or more people
Partnership
Sets safety standards for products other than food and drugs
Consumer product safety act
Makes it illegal to discriminated by charging different prices to customers
Robinson-Patman Act
a group of people who meet several times a year to make important decisions affecting the company.
Board of Directors
The amount the local franchise owner pays in return for the right to run the franchise
Initial franchise fee
A legal agreement that gives an individual the right to market a company's products or services in a particular area.
Franchise
Gives an inventor the sole right to make, use, and sell an invention
Patent laws
Bans unfair or deceptive actions or practices by businesses that may causes an unfair competitive advantage
Wheeler-Lea Act
When buying a business you should analyze financial statements for how long
3 years
Sets in writing the rights and responsibilities of all owners
Partnership agreement
Run by a board of directors, but is not taxed as a business
S Corporation
Makes it illegal for competitors to get together and set prices on the products or services they sell
Sherman Act
Helps consumers correct credit card billing errors
Fair credit billing act
Sole proprietorship
Set by local governments to regulate what types of buildings can be built in specific areas
Zoning Laws
Corporation
Bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthtul foods, drugs and cosmetics
Federal Food, drug, and cosmetic act
If a company has a debt of 953,583 & the company has 5 partners with the following investments: 40%, 20%, 17%, 15%, and 8%. What is the financial liability for each?
40%=$381,433.20
20%= $190,716.60
17%= $162,109.11
15%= $143,037.45
8%= $76308.24