Business Types
Which form of business organization is most common?
Sole Proprietorship
What is the role of silent partners in a limited partnership?
They contribute capital but are not involved in operations.
One advantage of a partnership over a sole proprietorship is that a partnership…
Ease of start-up.
Few restrictions.
Shared decision-making power.
Specialization.
Individual taxation.
Increased growth potential. (can get credit more easily)
Would a laid-off carpenter looking for a job be considered part of the labor force?
Yes!
A corporation is…
A business owned by shareholders with limited liability.
A publicly held corporation is…
A corporation that offers stock for sale to the general public and has many shareholders.
A chief executive officer (CEO) is…
The highest-ranking person in charge of managing a corporation.
What is a disadvantage of turning a partnership into a corporation?
Complexity of start-up.
Loss of control.
More government regulation.
Double taxation.
Outsourcing is the practice of…
Using contractors instead of staff.
What does a business franchise provide to its members?
Broad publicity (access to more markets).
What is venture capital?
Money from an individual investor that invests in a new business for ownership.
Which of these individuals is responsible for day-to-day operations in a business partnership?
General Partner
What is a disadvantage of a sole proprietorship?
The owner has unlimited liability for debts.
What is an explanation why the number of manufacturing jobs has declined?
Training and technology have increased productivity.
The Industrial Revolution significantly impacted labor by…
Introducing new technologies that increased productivity.
What is a trademark?
A distinctive name or symbol that identifies a firm and its products legally registered as the firm's property.
What is the primary responsibility of a board of directors in a corporation?
To oversee the management and make major decisions for the company.
One advantage of a corporation over a partnership is that a corporation…
Limited liability.
Growth potential.
Professional management.
Long life.
Which principle determines wage rates in a labor market?
Supply and demand
Which period of U.S. history brought legislation most supportive to collective bargaining?
New Deal
Which type of business organization faces the most regulation?
Corporations.
What does liability refer to?
Legal responsibility to repay debts and damages.
What is the main goal of a cooperative?
To offer low-cost goods or services.
Co-ops are not in business to make a profit. Rather their goal is to meet their members' needs for affordable goods and services.
One major reason women earn less than men on average is that women…
Have less opportunity to learn job skills in entry-level positions.
What does it mean for a corporation to be "publicly traded"?
It offers its shares for sale to the general public on stock exchanges.