Advantages: Don’t have to share profits, Be your own boss, Easy to start and Easy to End Disadvantages: Unlimited Liability, Financing can be hard, Owner can’t know everything
100
Define a sole proprietorship
a business owned by 1 person
100
What is a franchisor?
The company selling the franchise name and business operations.
100
Profit = Revenue - _________ - Expenses
Cost
100
facility
Liability
200
Partnership
Advantages: More Skills, Ideas, Money Disadvantages: Unlimited Liability, Partners can fight
200
True or False - A partnership is owned by more than 2 people.
False - It can be owned by 2
200
What type of liability is a corporation?
Limited Liability
200
What are the 2 types of ways a business can sell to make money
Selling Goods or Services
200
Championship
Partnership
300
Corporations
Advantages: Limited Liability, Transfer of ownership is easy, Selling Shares Disadvantages: Start up is timely (takes a long time), expensive, Not democratic
300
What type of Liability is a sole proprietorship?
Unlimited
300
Describe how an ownership works as a corporation in terms of slices of a pie?
The more shares you own (pieces of the pie) the more votes/ownerships you have.
300
Give an example of a obsolete product.
fashion, old cars, old computers, CD player
300
capsize sea
Franchise Fee
400
Franchisor
Advantage: Make money without opening new stores/outlets, Hard to manage many outlets, Grow using other peoples investment, Build on local knowledge, Good way to expand internationally Disadvantage: Don’t have full control, Ruin your Brand image (reputation)
400
What type of liability is a partnership
Unlimited Liability
400
Why would I want to buy a franchise over opening my own business as a sole proprietor?
You get all the knowledge, expertise, customers.
400
What is the difference between Unlimited and Limited Liability?
Unlimited Liability - the owner's and business assets can be taken away. Limited Liability - Only the business assets can be taken away
400
docks
stocks
500
Franchisee
Advantage: Known Brand, Ready made business, Quick start up, Expertise and Training, Buy the supplies from the franchiser Disadvantage: Franchise Fee, Monthly Membership Fee, Don’t have full control
500
Why is there a paper agreement outlining a partnership?
To outline the duties, investments, profits and debt of the business.
500
Name 4 things the franchisor give you for opening a franchise.
operations, designs, expertise, name etc.
500
Define Economics
is the social science that studies the production, distribution, and consumption of goods and services