A business owned and managed by a single individual.
What is a sole proprietorship
100
List at least 2 Advantages of a Sole Proprietorship.
What is 1.) Easy to start. 2.) Few regulations. 3.) Sole proprietor has full control and gains full profit.
100
List at least 2 Disadvantages of a Sole Proprietorship.
What is 1.) Unlimited personal liability, 2.) limited access to resources, and 3.) Limited life.
100
Putting forth less effort than the agreed-to effort.
What is Shirking
100
Nader's view as discussed in class.
What is that companies have ethical and social responsibilities.
200
A business organization owned by two or more persons who agree on a specific division of responsibility.
What is partnership
200
List at least 2 Advantages of a Partnership.
What is 1.) Easy to establish, 2.) Few Regulations, 3.) Shared decision making.
200
List at least 2 Disadvantages of a Partnership.
What is 1.) Unlimited liability, 2.) Potential for conflict, 3.) Profits must be shared.
200
Term for someone who receives the excess of revenues over costs.
What is a Residual Claimant
200
Milton's view as discussed in class
What is engage in open and free competition, without deception or fraud.
300
A legal entity, or being, owned by individual stockholders, each whom faces limited liability for the firm's debts.
What is corporation
300
List at least 2 Advantages of a Corporation.
What is 1.) Limited liability for owners, 2.) Transferable ownership, 3.) ability to attract capital.
300
List at least 2 Disadvantages of a Corporation.
What is 1.) Expensive and difficult to start, 2.) Double taxation.
300
This type of partner has unlimited liability.
What is a general partner.
300
Trend that businesses display in regards to their location.
What is companies competing for the same customer will move near each other.
400
A right to sell a good or service within an exclusive market.
What is Franchise
400
List at least 2 Advantages of a Franchise.
What is 1.) Management training and support, 2.) Standardized quality, 3.) National advertising programs, 4.) Financial assistance, 5.) Centralized buying power.
400
List at least 2 Disadvantages of a Franchise.
What is 1.) High Fees and royalties, 2.) Strict operating standards, 3.) Purchasing restrictions, 4.) Limited product line.
400
Term for when first corporate revenue is taxed and then dividends are taxed.
What is double taxation.
400
List at least 2 examples of a Franchise.
What is 1.) Subway, 2.) H&R Block, 3.) McDonald's
500
Decision Making body to a corporation.
What is Board of Directors
500
One makes you a lender and one makes you an owner.
What are bonds and stocks
500
This is when one party has information that another party to a transaction does not have.
What is asymmetric information.
500
Term for one who buys a franchise.
What is Franchisee.
500
List at least 2 examples of a Sole Proprietorship.
What is 1.) local bakery, 2.) local barber shop, 3.) hair salon.