What are the three categories of businesses in the US?
100
A business that is owned by one person
What is a sole proprietorship?
100
A business owned by two or more people
What is a partnership?
200
The form of business
What is one of the first decisions an entrepreneur must make?
200
74%
What is the percentage of US businesses that are sole proprietorships?
200
8%
What is the percentage of US businesses that are partnerships?
300
50%
What is the percentage of businesses that close before the end of the second year?
300
Freedom to enter & exit the market, freedom from outside control, freedom to retain information, freedom from paying excessive taxes, and freedom from being an employee
What are the advantages of a sole proprietorship?
300
A contract
What is recommended, but not required, in a partnership?
400
30%
What is the percentage of businesses that close before the end of the first year?
400
Limited personal financial liability, limited management and employment skills, limited life, and limited available money
What are the disadvantages of a sole proprietorship?
400
Who are the partners? What is each responsible for? How are profits divided? How can one withdraw? How is the partnership dissolved?
What are the five questions that must be answered when forming a partnership?
500
Greater skills, Greater chance of keeping competent employees, greater source of financing, ease of formation, and freedom to manage