Form of business
A legal entity with authority to act and have liability apart from its owners.
What is Corporation?
Two or more people legally agree to become co-owners of a business.
What is a partnership?
A business owned and usually managed by 1 person.
What is a sole proprietorship?
An arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory.
What is a franchise agreement?
short, specific, reason a business exists and what it want to achieve
What is a mission statement?
Sole proprietorship, Partnership, and Corporation.
What are the three major forms of business ownership?
The money, property, tools, and machines used to carry out a business are all referred to as
What is capital?
A business formed to provide an economic service (buying power) to its members rather than a profit is called a
What are a cooperative?
The person or group who buys a franchise
What is a franchisor?
This company is one of the biggest ice cream business in U.S.A.
What is Baskin Robbins?
A state’s written agreement giving a corporation the right to operate a business is called a/an
What is an article of incorporation?
Do you share the same goals?
Do you share the same vision for the company?
What can he/she bring to the business?
Do you trust one another?
How does he/she handles problems. etc.
What are questions to find your best business partner?
more specific statement of what a business expects to achieve and may be used to measure a business’ success.
What is a goal?
Double Jeopardy
The people who make the major policy and financial decisions in a corporation
What are the board of directors?
His company also features Excel, one of the most used computer software in business.
Who is Bill Gates?
Initial cost, Extensive paperwork, Double taxation, Two tax returns, Size, Difficulty of termination, Possible conflict with stockholders and board of directors
What are the disadvantages of corporation?
Unlimited liability, division of profits, disagreements, difficult to terminate.
What are the disadvantages of partnerships?
Unlimited liability - debts or damages incurred by the business are your debts even if it means selling your home, car or anything else, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited span
What are the major disadvantages of sole proprietorship?
Large start up costs, shared profit, management regulation, Coattail effects, restrictions on selling, fraudulent franchisors.
What are the disadvantages of franchising?
International Business Machines Corporation is also know as...
What is IBM?
Limited liability, ability to raise more money for investment, size, perpetual life, ease of ownership change, ease of attracting talented employees, separation of ownership from management.
What are the advantages of corporation?
More financial resources, shared management and pooled skills/knowledge, longer survival, no special taxes.
What are the advantages of partnerships?
Ease of starting and ending the business, being your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes.
What are the major advantages of sole proprietorship?
Management and marketing assistance, personal ownership, nationally recognized name, financial advice and assistance, lower failure rate.
What are the advantages of franchising?
number of employees assigned to a person
What is Span of Control?