Chapter 8 business structures part 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Business organization
answer
an establishment formed to carrt on commerical enterprise. Company or firm, and most common form is a sole proprietorship
question
Sole Propiertorship
answer
business owned and managed by an individual, responbible for ALL debts, most are SMALL
question
SOLE PROPRIETORSHIP percentage in business
answer
75%
question
SOLE PROPRIETORSHIP percentage in sales
answer
6%
question
SOLE PROPRIETORSHIP requirement 1
answer
Authroization: Business license
question
SOLE PROPRIETORSHIP requirement 2
answer
Site Permit
question
SOLE PROPRIETORSHIP requirement 3
answer
Name: Register
question
SOLE PROPRIETORSHIP advantage 1
answer
Simple to establish
question
SOLE PROPRIETORSHIP advantage 2
answer
Easy start-up
question
SOLE PROPRIETORSHIP advantage 3
answer
Least expensive
question
SOLE PROPRIETORSHIP advantage 4
answer
Earns all profits
question
SOLE PROPRIETORSHIP advantage 5
answer
Full control
question
SOLE PROPRIETORSHIP advantage 6
answer
Fast
question
SOLE PROPRIETORSHIP advantage 7
answer
Fleixble changes
question
SOLE PROPRIETORSHIP advantage 8
answer
Easy to discontinue
question
SOLE PROPRIETORSHIP disadvantage 1
answer
Unlimited personal liability (pay dets)
question
SOLE PROPRIETORSHIP disadvantage 2
answer
Limited access to resources (banks hesitatn to finance)
question
SOLE PROPRIETORSHIP disadvantage 3
answer
Difficult to expand
question
SOLE PROPRIETORSHIP disadvantage 4
answer
Not enough time
question
SOLE PROPRIETORSHIP disadvantage 5
answer
Lack of permanence
question
SOLE PROPRIETORSHIP disadvantage 6
answer
Little Fringe benefits (payments to employees other than salary
question
Partnership
answer
business organization owned by two or more people
question
Partnnerships have
answer
divided power and benefits
question
General Partnership
answer
Most common, equal share of responsibility and liability
question
example of general partnership
answer
Doctors, lawyers
question
Limited Liability partnerships
answer
all limited partners, limited from each other''s liability
question
Example of Limited liability partnership
answer
Dentists not blamed for other dentists mistakes
question
PARTNERSHIP advantage 1
answer
Easy start u: inexpensive
question
PARTNERSHIP advantage 2
answer
Articles of partnership: priavte agreement
question
PARTNERSHIP advantage 3
answer
If they do not have one they fall under Uniform Partnership Act where the state sets the rules and standarads
question
PARTNERSHIP advantage 4
answer
Subject to little government regulation
question
PARTNERSHIP advantage 5
answer
EAch partner brings new strangths and skills
question
PARTNERSHIP advantage 6
answer
larger pool capitals
question
PARTNERSHIP advantage 7
answer
easier to expand
question
PARTNERSHIP advantage 8
answer
not subject to special taxes
question
PARTNERSHIP advantage 9
answer
Pay income tax on their share
question
PARTNERSHIP disadvantage 1
answer
Except for limited liability partnerships, one partner has unlimited liability
question
PARTNERSHIP disadvantage 2
answer
Each partner bound by other partners actions
question
PARTNERSHIP disadvantage 3
answer
Potential conflict
question
Profession assocations
answer
work to improve the image, working conditions, and skill levels of people in particualar positons
question
example of professional assocation
answer
national education association
question
Business associations
answer
collective busienss interest of a city, state or other georgaphical area, or a group of similar business
question
example of buiness assocations
answer
chamber of commer- attracts workers to area
