Advantages/Disadvantages of Various Types of Businesses
100
The number of fundamental functions a business must perform in order for it to be successful?
What is 6?
100
Food, water, shelter, and oxygen.
What are example of a need?
100
Accounting, insurance, education, banking, hospital, and restaurants.
What are examples of services?
100
Corporation.
What is a type of business owned by many people who are known as stockholders?
100
Very easy to start and the profits don't have to be split between several people.
What is a sole proprietorship?
200
Meet the needs and wants of consumers and Profit Motive- to make money.
What are the two main reasons people start businesses?
200
Wants.
What are things that are not necessary for survival, but add comfort and pleasure to your life.
200
Services.
What are examples of intangible economic activity?
200
Franchise.
What is a contractual agreement to sell a company's products or services in a specific geographical area?
200
A charter must be completed and approved by the headquarters state.
What is a Corporation?
300
The function of business that maintains email accounts, maintaining hardware and computer networks, and installing computer hardware and software.
What is Information Technology?
300
Bottled water, name brand clothing, luxury apartment, and sports car.
What are examples of wants?
300
Good.
What is a commodity or a physical, tangible item that satisfies a human need or want.
300
Partnership.
What is a type of business owned by two or more people?
300
This form of business may have the following disadvantages:
Owners may not get along well.
Profits have to be shared.
Have to share the responsibility of a bad decision made by one of the business owners. (debt)
What is a Partnership?
400
Human Resources.
Which of the following fundamental functions of business is responsible for the hiring and firing of employees?
400
We must have needs to survive; wants are nice to have.
What is how needs and wants are different?
400
Consumers.
What is someone who uses goods and services.
400
Sole Proprietorship.
What is a type of business owned by only one person?
400
This form of business has the following disadvantages:
Business must operate like other businesses that are the same.
Limited in what products or services can be sold.
Parent company is strict about how business is run.
What is a Franchise?
500
Products, Promotion, Pricing, and Placement.
What are the 4 P's of marketing?
500
Both are "things" --goods
What is how needs and wants are alike?
500
Tangible.
What is the term that means that you CANNOT touch, feel, see, store up, assume ownership of something purchased.
500
Medical practices, law firms, restaurants, and hair salons.
What are examples of partnerships?
500
This form of business has the following disadvantages:
Difficult to obtain capital needed to start the business
Owner might lack business skills
Owner has full responsibility for company's debts and can lose entire investment as well as personal assets.