Sole-Proprietorship
How much liability does a sole-proprietorship have?
All
All partners share equally in responsibility and liability
General Partnership
Who owns a corporation?
individual stockholders
Red Cross, YMCA, Hospitals, Goodwill, Church organizations
Name 4 types of market structures
Monopoly, Oligopoly, Perfectly Competitive, Monopolistic Competition
What is a disadvantage of a sole-proprietorship?
Limited life, have to risk own money, all liability
2 disadvantages of a partnership
shared decision making, unlimited liability
Difference between a publicly held corporation and a closely held (privately held) corporation?
Public-many shareholders and anyone can buy
Private- only a few people, such as family
Purpose of a non-profit
Has the most control over the price of a good
Monopoly
What are 3 benefits of a sole-proprietorship?
easy to start and stop, few regulations, owner receives all the profit
Difference between limited partnership and limited liability partnership?
Limited Partnership-one partner is general partner
LLP-all partners are limited partners
Portion of corporate profits paid out to stockholders
Dividend
Biggest benefit for a non-profit
Tax Breaks
Why is a farmers market an example of a perfectly competitive market?
Lots of sellers, identical products
Why have difficulty expanding the business for sole-proprietorship?
Lack of access to resources
Difference between sole-proprietorship and general partnership.
Who has the liability
How can original owners lose control of company with a corporation?
Officers and board of directors will run corporation, not owners---don't own a majority of company with stocks
Grants, government aid, donations
How can the government create an oligopoly?
Patents
Name 3 examples of Sole-Proprietorship in the Arcadia/Cicero area
Restaurants
What type of partnership would a franchise be an example of?
Limited Partnership
Example of horizontal merger and a vertical merger
Horizontal-Nike and Adidas
Vertical- Car manufacturer purchases a tire company
What do non-profits do with the "profits" that they make
Invest in the community and the organization
Explain how tennis shoes are an example of a monopolistic competition market
little control of price, differentiated products, many firms, few barriers to entry