Definitions
Business owned by one person
Sole Proprietorship
In a partnership you are responsible for the others partners actions, good or bad, even if you are unaware
True
They are responsible to guide the directions of the business
Board of Directors
Why is the articles of partnership important
describe something about each owners responsibility
This is the process of thinking, gathering and analyzing information then making decisions
Business owned and managed by a small group of people (Usually 2 or 3)
Partnership
You do not need to discuss and agree upon all matters before making a decision
False
what benefit does franchising provide
Something about brand already being established
You obtain written permission to sell someone else’s product as well using their name
Franchise
All of the activities involved in hiring, finding, training, selecting, training, rewarding
Staffing
People who own stock in a company
Shareholders
Each shareholder has one vote for each stock owned
True
Two types of cooperatives that were discussed in the notes
Consumer
Producer
Point of this meeting was to elect officers
Meeting of Shareholders
means comparing what actually happens with what was planned
Controlling
Employees who are responsible for coordinating resources within a business
Managers
The board is not responsible for the policies
False
They can be operated as a proprietorship, corporation or partnership
Franchise
You are not responsible for the debt of the company
You only lose the amount you have invested in the company
You do not have to worry about the actions of other partners
Benefits of forming a corporation
Determining what work needs to be done and who is going to do it
Include the essential agreements on who is responsible for what duties
Articles of Partnership
Keep it all in the business
Pay dividends
Do both
Options when a business makes a profit
Business that is owned by the members it serves and is managed by their interests
Cooperatives
The difference is how they are controlled, either each member has 1 vote or you vote is determined by the amount you do for the company
Two ways in which cooperatives are controlled
Start a business (Sole Proprietorship)
Bring in a partner (Partnership)
Need to decide if you need more partners or not
If the Answer is “No”, you dissolve the partnership and draw up the certificate of incorporation”
Steps to expanding a business