Sole Proprietorship
Partnership
Corporation
General
Random
100
a business owned and run by one person
What is sole proprietorship?
100
-A business jointly owned by two or more persons.
Define partnership.
100
-A form of business recognized by law as a separate legal entity having all the rights of an individual
Define a corporation.
100
-There are three forms of business organizations
How many forms of business organizations are there in the economy today?
100
-Sole proprietorship, non profit organization, professional association
Name three of the four type of business organizations.
200
-The ease of management,the owner enjoys the profits of successful management without having to share
What is an advantage of sole proprietorship?
200
-Two types of partnerships: general partnerships and limited partnerships
How many types of partnerships are there?
200
-People file for permission from the government or the state where the business will have its headquarters. If approved they get a charter ( document needed to create a corporation)
How do you form a corporation?
200
-Sole proprietorship, partnerships, and corporations
What are the three forms of business organizations?
200
-The sum of net income and non cash charges such as depreciation
Define cash flows.
300
-Owner has unlimited liability, difficulty of raising financial capital
What are the disadvantages of sole proprietorship?
300
-More than one owner involved, need legal papers called articles of partnership
How do people form a partnership?
300
-Common stock: represents basic ownership of a corporation -Preferred stock: represents nonvoting ownership shares of the corporation
What is the general structure of a corporation?
300
-Sole proprietorship is the most common
Which is the most common business organization in the U.S today?
300
A corporation that has manufacturing or service operations in a number of different countries
What is a multinational corporation?
400
-Ease of establishment , ease of management, the lack of special taxes on a partnership
What are the advantages of partnerships?
400
-The ease of raising financial capital, the directors of the corporation can hire professional managers to run the firm, the corporation provides limited liability for its ownerss
What are the advantages of a corporation?
400
-Federal and state governments pass regulations, states help set insurance company rates, administer licensing exams etc.
How does the government regulate business?
400
-When two or more firms that produce the same kind of product join forces
What is a horizontal merger?
500
-Each partner is fully responsible for the actions of all other partners
What are the disadvantages of a partnership?
500
-Difficulty and expense of obtaining a charter, owners, shareholders , have little say on how the business is run after they have voted for the board of directors, also corporations and subject to more government regulation
What are the disadvantages of a corporation?
500
A firm that has at least four businesses each making unrelated products none of which is responsible for a majority of its sales
What is a conglomerate?
500
Vertical merger is when firms involved in different steps of manufacturing or marketing join together unlike horizontal merger
Describe the difference between a horizontal and vertical merger?
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