Business Ownerships Flashcards
Advantages include
Quicker tax prep. , Filing taxes easier, lower start up cost, limited capital, no pay roll, ease of money handling
Disadvantages
Unlimited liability , personally liable, lack of financial control, lack of controlling accounts , difficulty in rising capital, limit in growth
Form of business for which two or more people operate for common goal of making profit, total and unlimited liability of?
Partnership
Debts incurred by the partnership
Three classifications of profit partnerships
General : split liabilities loss and profit
Limited: gen. Partnership along with one or more lim. Partnerships
Limited liability : partnership in which some or all have limited liability
Legally binding contracts between two or more partners to place their capital, labor, and skills with the understanding that there will be sharing of profits and losses
Partnership agreements
S corporations
Income is taxed at shareholder level not corporate
C corporations
Taxed separately from owners
Limited liability companies
Well suited for company with single owner
Non profit organization
Uses surplus revenues to achieve goals rather than distribute as profits
Type of business entity that is owned and run by one individual and no legal distinction between owner and business , how much percent of business fall under category
Sole proprietorship, 75%
What is a competitive advantage
When an organization develops an attribute to help it outperform competitor
Two important aspects of international trade
Absolute advantage and balance of trade
Absolute advantage is the capability
To produce more using less of a resource
Balance of trade the difference between
Monetary value of exports and imports over a given period of time
Importing and export in general are
Import for what they lack a competitive advantage in
Export for what they have a competitive advantage for
