Definitions
Buyer cooperatives
A combination of members purchasing power. This type of cooperative increases purchasing power and efficiency that results in lower prices.
What is a partnership?
A business owned jointly by two or more people.
What is the difference between the two types of cooperatives?
Corporations are owned by the business owners and make their own cash flow to maintain their business.
False.
Corporations are owned by shareholders who invest money into the business by buying shares of stock. Portions of the corporations depend if the percentage of stock they hold.
Seller cooperatives
Individual producers join to compete more effectively with large producers. Examples are agricultural production, ocean spray (cranberries and juices)
What are the two types of partnerships?
A single general partner who runs the business and is responsible for all actions
Any number of limited partners who have limited involvement.
What is the difference between a small medium and large business (number of employee wise)
Small: 1-99 PAID employees
Medium: 100-499 PAID employees
Large: 500 + PAID employees
There are many drawbacks to incorporation
true. Examples are
Corporations are more costly to set up
Managers are often more interested in their career advancement than the overall profitability of the company.
What are Financial resources?
Financial resources makes it possible for businesses to raise funds by selling stock which is a big advantage as a growing company needs more funds to operate and compete
What are some advantages and disadvantages in partnerships?
Advantage: Brings together diverse groups, shared responsibility. Makes financing easier as the business can draw on a number of individuals
Disadvantages: Subject to unlimited liability. Partnership means having to make shared decisions that people might not be comfortable with. Partners share profit.
What is a sole proprietorship business?
You make all important decisions and are generally responsible for all day-to-day activities.
As a sole proprietorship, you have to make all decisions and take on most of all the responsibility, leaving the business for a period of time will cause the business to dissolve, given your talents supply most of the businesses success.
T or F: Specialized management in corporations allows them to attract more skilled and talented employees
What are cooperatives?
A legal entity with several corporate features such as limited liability, unlimited life span, an elected board of directions, and an administrative staff.
what are the impacts of partnership agreements? (Hint 6 points)
Amount of cash and other contributions made by each parter
Division of partnership income
Partnership responsibilities
Conditions under which a partner can sell an interest in the company
Conditions for dissolving the partnership
Conditions for setting disputes
What are all the forms of ownership (6)
1. LLC (limited liability company)
2. Not for profit corporations:
3. Partnership
4. Corporation
5. Sole proprietorship
6. Cooperative
Continuity in corporations means share holders can just sell their stock to others.
False.
thats the transferability definition sry
What is unlimited liability in partnership
Business in partnerships can be risky as they are not only responsible for their own actions, but for the actions of their partners.
List the 7 principles that cooperatives must follow
Open membership (open to all people to use its services)
Democratic member control (organizations are in control of their members)
Members’ economic participation (members contribute equally to the capital)
Autonomy (cooperatives are self-help organizations controlled by their members)
Education and training (cooperatives provide education and training to their members)
Cooperation among cooperatives (cooperatives strengthen one another)
Concert for community (SDG’s are considered)
what is the difference between corporation and incorporation
Incorporation is the process of forming a new legal entity, while a corporation is the resulting legal entity itself.
Autonomy is when cooperatives are self-help organizations controlled by their members
true