Forms of Business
What is the most common form of business organization in the US?
Sole Proprietorship
What is a balance sheet?
Assets, liability on a certain date.
What are the 3 cooperatives.
Consumer cooperatives, service cooperatives, and nonprofit service cooperatives.
What is an unincorporated business owned and run by a single person who has rights to all profits and unlimted.
Sole Proprietorship
1. entrepreneurs already have an idea or opportunity to make profit.
2. the ease of operations.
3. the owner can keep the profits.
4. the unlimited satistfaction from being your own boss.
What is the income statement?
Shows profit and loss over a period of time.
What does a Labor Union do?
A labor union is an organization that works for its memebrs' interests concering pay, working hours, health, courage, fringe, benefits, and other job-related matters.
What is an unincorporated business owned and operated by two or more people who share the profits and have unlimted liability for the debts and liability of the firm.
Partnerships
What is a general partnership?
All partners are jointly responsible.
What is a statement of cash flows?
In flow and out flow of cash during a period of time.
What is the role of The Tennessee Valley Authority?
The direct role is supplying electric power to most of Tennessee and several other states.
What is a business organization recognized by law as a seperate legal entity with all the rights and responsibilites of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued.
Corporations
1. Limited life.
2. Potential conflict between partners.
What are the two types of mergers?
A horizontal and vertical merger.
Whats the Direct role of Government in a Market Economy?
Supplies a good or service.
A secuirty that represents ownership in a corporation.
Common Stock
Why is trading shares a game of chance?
Because everything depends on the value and size.
What does a venture do?
A venture capitalist provides investment funds to a start-up business in exchnage for partial ownership of the business.
Whats the direct role of The Federal Deposit Insurance?
Plays a direct role by insuring deposits in banks.
Liability thats not capped by law or a contract.