Podcast
Questions and Answers
Which of the following types of businesses consist of two or more people that pool their resources and knowledge together?
Which of the following types of businesses consist of two or more people that pool their resources and knowledge together?
- Sole Proprietorships
- Corporations
- Partnerships (correct)
What is one of the primary benefits with forming a corporation?
What is one of the primary benefits with forming a corporation?
Limited Liability
What is the primary advantage of not-for-profit organizations?
What is the primary advantage of not-for-profit organizations?
Profits are not taxed
In what year was the Internal Revenue Code amended to prevent non-profits from endorsing or opposing political candidates?
In what year was the Internal Revenue Code amended to prevent non-profits from endorsing or opposing political candidates?
Which church took out a full-page ad in the USA Today and the Washington Times newspapers advocating against voting for a president?
Which church took out a full-page ad in the USA Today and the Washington Times newspapers advocating against voting for a president?
Ronald Coase created one of his most important pieces of work titled “The Problem of Social Cost” in what year?
Ronald Coase created one of his most important pieces of work titled “The Problem of Social Cost” in what year?
For simple, repetitive transactions that involve no commitment to specialized resources, the transaction costs of market coordination tend to be what?
For simple, repetitive transactions that involve no commitment to specialized resources, the transaction costs of market coordination tend to be what?
The primary gains from expansion include which of the following?
The primary gains from expansion include which of the following?
Flashcards
Partnership
Partnership
A business formed by two or more individuals who combine resources and expertise.
Limited Liability
Limited Liability
A feature of corporations where owners (shareholders) are not personally responsible for the company's debts.
Non-profit Advantage
Non-profit Advantage
The main benefit of a not-for-profit organization is that its profits are not subject to taxation.
1954 Amendment
1954 Amendment
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The Church at Pierce Creek
The Church at Pierce Creek
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Transaction Costs
Transaction Costs
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The Problem of Social Cost
The Problem of Social Cost
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Low Transaction Costs
Low Transaction Costs
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Primary Gains from Expansion
Primary Gains from Expansion
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Primary Losses from Expansion
Primary Losses from Expansion
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Study Notes
Business Types
- Partnerships are businesses consisting of two or more people pooling resources and knowledge.
- Corporations offer limited liability as a primary benefit.
Non-Profit Organizations
- Non-profit organizations differ from other businesses in that their profits are not taxed.
- In 1954, the Internal Revenue Code was amended to prevent non-profits from endorsing or opposing political candidates.
- The Church at Pierce Creek ran a full-page ad opposing a president in USA Today and the Washington Times.
Transaction Costs
- Transaction costs are not related to production costs. They include the costs of negotiating agreements and ensuring compliance.
Ronald Coase
- Ronald Coase wrote "The Problem of Social Cost" in 1960/1961.
Market Coordination
- Simple transactions, without specialized resources, have low market coordination costs.
Business Expansion
- Gains from expansion include stable frameworks, reduced opportunism, and adaptability to unexpected changes.
- Losses from expansion include lost economies of scale, increased bureaucracy, and diminished incentives.
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Description
This quiz covers key concepts related to business types, including partnerships and corporations, as well as non-profit organizations and their unique characteristics. Additionally, it examines transaction costs, market coordination, and insights from Ronald Coase's work. Test your understanding of these important business principles!
