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Questions and Answers
What are the three types of business ownerships discussed in the text?
Sole proprietorship, partnerships, corporations
What is the main advantage of a corporation in terms of liability?
Limited liability - the owner is not personally liable if the business goes under.
What is the main disadvantage of a corporation in terms of taxation?
Double taxation - the corporation pays taxes on its profits, and shareholders pay taxes on dividends.
Explain the concept of preferred shares in a corporation.
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What does it mean for a share to be 'callable'?
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What is the main advantage of franchising a business?
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What is one of the disadvantages of franchising?
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What key information should be included in a business plan?
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What is the Diamond of sustainable growth in business?
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What is the main advantage of a sole proprietorship?
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What is the main disadvantage of a partnership?
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What advantage do common shareholders have in a corporation?
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What is the purpose of a partnership agreement?
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