Business

Question 1

An enterprise, or firm also an organization involved in the trade of goods, services or both to consumers

Answer 1

Business

Question 2

The difference between the cost and selling price

Answer 2

Profit

Question 3

Simplest form of business
Owned by one person ( own boss )
Entitled to all profits
Responsible for debts

Answer 3

Sole Partnership

Question 4

Most common there are 2 types

Answer 4

Partnerships

Question 5

All parties have equal responsibility and are liable for debts

Answer 5

General Partnership

Question 6

Is a general partner and 1 or more partners are limited ( not active in running the business )

Answer 6

Limited Partnerships

Question 7

Business owned by shareholders who elect Board of Directors who oversee the daily operation of the business
Stock/share= partial ownership
They can be government or privately owned
They can be for profit or non profit

Answer 7

Corporations

Question 8

Combination of corporation and partnership
They give personal liability protection
No tax on company / only the individual mainly one or two
Most do not have stock owners
( Nike , Amazon, Apple are exceptions )

Answer 8

Limited liability

Question 9

A business investment that involves renting or leasing another corporation or business
Act as an agent for company’s product
Pay for start up costs
Sign a contract 3-5 years

Answer 9

Franchise

Question 10

Owner and creator of a business

Answer 10

Franchisor

Question 11

Person who invest in the business model

Answer 11

Franchisee

Question 12

Pros of Fanchise

Answer 12

Piggy back on successful model
No business experience needed
Earn a decent income

Question 13

Cons of franchise

Answer 13

Fee can be high
Time consuming ( 9 to 5 )
You share your profits