What are the three categories of businesses in the US?
100
A business that is owned by one person
What is a sole proprietorship?
100
A business owned by two or more people
What is a partnership?
100
A business that is legally separated from it's owner
What is a corporation?
100
Limited partnership
What is the form of business that counters some of the objections to a partnership?
200
The form of business
What is one of the first decisions an entrepreneur must make?
200
74%
What is the percentage of US businesses that are sole proprietorships?
200
8%
What is the percentage of US businesses that are partnerships?
200
Public and Private
What are the two types of corporations?
200
Who are the partners? What is each responsible for? How are profits divided? How can one withdraw? How is the partnership dissolved?
What are the questions to ask when forming a partnership?
300
50%
What is the percentage of businesses that close before the end of the second year?
300
Freedom to enter & exit the market, freedom from outside control, freedom to retain information, freedom from paying excessive taxes, and freedom from being an employee
What are the advantages of a sole proprietorship?
300
A contract
What is recommended, but not required, in a partnership?
300
IBM, Exxon, Disney, Coco Cola, General Electric, Reader's Digest, Hallmark
What are examples of private corporations?
300
Someone who only risks the amount of initial investment
What is a limited partner?
400
30%
What is the percentage of businesses that close before the end of the first year?
400
Unlimited personal financial liability, limited management and employment skills, limited life, and limited available money
What are the disadvantages of a sole proprietorship?
400
Unlimited personal financial liability, uncertain life, conflict between partners
What are the disadvantages in a partnership?
400
Tennessee Valley Authority and nuclear power plants
What are examples of public corporations?
400
Continuous life, limited personal liability, experienced management, and specialized employees
What are the advantages of a corporation?
500
Greater skills, Greater chance of keeping competent employees, greater source of financing, ease of formation, and freedom to manage
What are the advantages of a partnership?
500
"Outstanding Shares" of a corporation
What are shares that are available for purchase?
500
higher taxes, greater regulations, lack of secrecy, impersonal and rigidity