Sole proprietorships
How many owners are in a sole proprietorship?
1
What are the three types of of partnerships?
general partnership, limited partnership, limited liability partnership.
What is a corporation?
A legal entity owned by individual stockholders
What are the three types of corporate mergers?
Horizontal merger, vertical emrger, conglomerates
What are the advantages of sole proprietorships?
East startup and shutdown, owner keeps all money after income taxes, run the business however you want
What’s the most common type of partnership?
Gernreal partnership
What are the advantages of incorperarion?
Limited liability for owners, transferable ownership, ability to attract capital, long life
What is a horizontal merger?
A merger of two or more firms competing in the same market with the same good or service
What are the disadvantages to sole proprietorships?
Limited access to resources and lack of permanence
What are the roles of the people in a limited partnership?
There is one general partner and the rest of the partner(s) contribute money.
What is a bond?
A bond is a formal contract to repay money with interest.
What is an example of vertical mergers?
Andrew Carnegie’s steel company followed this method and Apple
What are some examples of a sole proprietorship?
Barber shops, salon, convenience store.
What are examples of limited liability partnership?
Attorneys, doctors, accountants
What is a stock?
Certificate of ownership in a corporation
What is a conglomerate?
A merger of at least three companies that produce completely unrelated good and services