Podcast
Questions and Answers
What is the defining characteristic of a sole proprietorship?
What is the defining characteristic of a sole proprietorship?
- A business owned and operated by a group for shared benefits.
- Ownership and management by a single individual. (correct)
- Shared ownership and management by multiple individuals.
- Ownership by stockholders with a board of directors.
Which of the following is a major disadvantage of a sole proprietorship?
Which of the following is a major disadvantage of a sole proprietorship?
- Minimal regulatory requirements and ease of setup.
- The owner is personally liable for all business debts and obligations. (correct)
- The owner possesses full control and decision making authority.
- The owner receives all the profit
In a general partnership, how is responsibility typically divided among the partners?
In a general partnership, how is responsibility typically divided among the partners?
- Responsibility relies on who has more experience.
- Responsibility is determined by a pre-agreed ratio outlined in a partnership agreement.
- All partners share equally in both responsibility and liability. (correct)
- Responsibility is divided based on initial investment amounts.
What is considered a key advantage of a general partnership, contrasting it with a sole proprietorship?
What is considered a key advantage of a general partnership, contrasting it with a sole proprietorship?
Why is the shared liability among partners a significant consideration when forming a partnership?
Why is the shared liability among partners a significant consideration when forming a partnership?
What primary advantage does a franchise offer compared to starting an independent business?
What primary advantage does a franchise offer compared to starting an independent business?
Who are the owners of a corporation?
Who are the owners of a corporation?
Approximately what percentage of the nation's income is generated by corporations?
Approximately what percentage of the nation's income is generated by corporations?
What is the key characteristic that distinguishes a corporation from other business structures?
What is the key characteristic that distinguishes a corporation from other business structures?
What is the primary disadvantage of a corporation concerning taxation?
What is the primary disadvantage of a corporation concerning taxation?
What defines a horizontal merger?
What defines a horizontal merger?
What is the main concern governments when two competitors propose a horizontal merger?
What is the main concern governments when two competitors propose a horizontal merger?
What is the defining characteristic of a cooperative?
What is the defining characteristic of a cooperative?
What is the primary purpose of a cooperative that distinguishes it from other business organizations?
What is the primary purpose of a cooperative that distinguishes it from other business organizations?
What is the main objective of a non-profit organization?
What is the main objective of a non-profit organization?
What is the overarching goal that guides the activities and decisions of a nonprofit organization?
What is the overarching goal that guides the activities and decisions of a nonprofit organization?
According to standard labor regulations, who among the following is generally considered employed?
According to standard labor regulations, who among the following is generally considered employed?
Which of the following is an example of an employed person?
Which of the following is an example of an employed person?
A recent graduate aims to increase their earning potential. What action would directly contribute to achieving this goal?
A recent graduate aims to increase their earning potential. What action would directly contribute to achieving this goal?
How is the level of wages determined in the modern economy?
How is the level of wages determined in the modern economy?
Flashcards
Sole Proprietorship
Sole Proprietorship
A business owned and managed by a single individual.
Advantages of Sole Proprietorship
Advantages of Sole Proprietorship
Easy to start, few regulations, the owner receives all profit, and has full control.
Disadvantages of Sole Proprietorship
Disadvantages of Sole Proprietorship
The owner is personally liable for all business debts and may have difficulty borrowing money.
General Partnership
General Partnership
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Disadvantage of a Partnership
Disadvantage of a Partnership
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Advantages of a Franchise
Advantages of a Franchise
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Corporation
Corporation
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Corporation vs Other Businesses
Corporation vs Other Businesses
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Double Taxation (Corporation)
Double Taxation (Corporation)
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Horizontal Merger
Horizontal Merger
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Cooperative (Co-op)
Cooperative (Co-op)
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Non-profit
Non-profit
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Entrepreneurs
Entrepreneurs
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Fringe Benefits
Fringe Benefits
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Partnership
Partnership
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Business Franchise
Business Franchise
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Corporation
Corporation
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Conglomerates
Conglomerates
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Multinational Corporations
Multinational Corporations
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Study Notes
Sole Proprietorship
- This is a business owned and managed by one person.
- Advantages include easy setup, minimal requirements and regulations, sole profit receiver, and full control.
- Disadvantages include the owner being fully liable for all debts, difficulty securing loans, and limited life.
General Partnership
- All parties share responsibility and liability equally.
- Major advantage compared to a sole proprietorship is shared responsibility.
- A key disadvantage is that all partners are liable for the business's debt if it fails.
Franchise
- A major advantage is guidance from the parent company in running the business.
Corporations
- A corporation is a legal entity owned by individual stockholders.
- Corporations generate 60% of the nation's income.
- Corporations possess a separate legal identity from their owners.
- A disadvantage of corporations is double taxation, where taxes are paid on profits and stockholders pay taxes on dividends.
Horizontal Merger
- This involves combining two or more firms competing in the same market with the same goods and services.
- The government is concerned about horizontal mergers because they can reduce competition.
Cooperatives (Co-ops)
- These are controlled by their members.
- They are a type of business organization owned and operated by a group of individuals for their shared benefit.
Non-Profits
- They function like a business but do not operate to generate profit.
- The goal is to benefit the public in some way.
Employment
- Someone 16 or older is considered employed.
- Working 15 hours or more without pay in a family business is also considered employment.
- Earning higher wages involves further education or training.
- Supply and demand control wages.
- The ratio between benefits and wages has changed since 1975, with benefits now representing a higher percentage of total earnings and these have increased substantially.
Matching Definitions
- Entrepreneurs: Risk-taking individuals assuming total responsibility.
- Sole Proprietorship: A business owned and managed by a single individual.
- Business License: Permission from local government to do business.
- Fringe Benefits: Extras given to workers other than wages.
- Partnership: A business organization owned by two or more who agree on a specific division of responsibilities and profits.
- Business Franchise: A semi-independent business that pays fees to a parent company.
- Corporation: A legal entity owned by individual stockholders.
- Conglomerates: When three or more businesses producing unrelated products or services merge.
- Multinational Corporations: The world's largest corporations sell goods and services in more than one country.
- Cooperative: A type of business organization owned and operated by a group of individuals for their shared benefit.
- Nonprofit Organizations: Function like a business but do not operate for generating profit.
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