Red
Give me an example of a non-profit
Church, hospital, adoption agency, school, credit union
What is a major disadvantage of a corporation?
Double Taxation
Both corporate income and stockholder profits are taxed
What is a dividend?
Sarah owns stock in YouTube. What does that mean?
She owns a small portion of YouTube and receives portions of it's profits
Joe owns a small restaurant and decides to retire. When he does, his restaurant closes down as well.
What is this an example of?
Limited Life
Rob and Mark own a bakery together but Rob has more liability than Mark does. What business structure do they have?
Limited Partnership
Cash Flow
Union workers at a hospital meet with their employers to discuss better pay and health benefits. They are participating in what concept?
Collective Bargaining
T or F
an income statement shows only a business's profits
F
Income statements show a business's profits AND expenses
Delaware offers tax breaks and has more legal protection for businesses
What is an advantage of non-profits?
They are exempt from federal taxes
A Nonprofit business organization set up by businesses for consumers to promote ethical business practices
Better Business Bureau (BBB)
Jewel + Aldi combine
Starbucks + Dunkin combine
Horizontal Merger
Which business structure is most common in the US?
Sole Proprietorship
A business owned and operated for the benefit of its members
Ex: A credit Union
Cooperative / Co-Op
Lech Bakery has operations in the US, France and Japan. Lech bakery is an example of...
a Multinational
What is a bond?
A loan made to a company or government
A business where the owner licenses its trade name/model to another person
Franchise
What is a conglomerate?
A company made up of 4 or more unrelated businesses
Aldi decides to merge with its suppliers and producers into one large company. What is this an example of?
Vertical Merger
What are the 3 things a corporation has the legal right to do?
1. Sue and be sued
2. Enter legal contracts
3. Buy and sell land
What is a Venture Capitalist?
(Hint: Think Shark Tank)
What is Double Taxation?
Corporations being taxed on profits and shareholders on dividends
How is net income calculated?
Profits - expenses (bills, rent, wages, etc) = net income