10/6 notes

Question 1

affordable care act (ACA)

Answer 1

you have to have insurance. Made to help reduce the cost of health insurance coverage for individuals who qualify

Question 2

single propieter

Answer 2

one owner, easiest to form

Question 3

partnership

Answer 3

run by two ppl, there will be conflict

Question 4

corporation

Answer 4

owned by shareholders

Question 5

principal agent problem

Answer 5

conflict in priorities between a person or group and the representative authorized to act on their behalf

Question 6

which business form leads to principal agent problem

Answer 6

corporation

Question 7

liability

Answer 7

-how much do you have to pay when something happens
-unlimited
-any aspect you have can be taken (like house, car)

Question 8

unlimited liability

Answer 8

no stop to what you owe

Question 9

what business form has limited liability

Answer 9

corporation

Question 10

limited liability

Answer 10

corporation is only liable to lose their company

Question 11

what do you get when a business is failing

Answer 11

loans

Question 12

what can a corporation do when the business is failing

Answer 12

use savings (retained earnings) or stocks/bonds

Question 13

stock equities

Answer 13

ownership

Question 14

bonds

Answer 14

debt

Question 15

common parternships

Answer 15

medical practices and law firms

Question 16

abundance of type of companies in the US

Answer 16

70%=SP
P=20%
10%= corporation

Question 17

profit margins for each business type

Answer 17

70%=corporation
20%=partnership
10%=SP

Question 18

franchise

Answer 18

type of license that grants the franchisee access to franchisers proprietary business knowledge, processed and trade markets, THUS allowing the franchisee to sell a product or service under the franchisers business name