Chapter 7 Q #11- 20 Flashcards
Which of the following is a downside of choosing a business structure where the owner has full control?
The owner has full responsibility and liability for the business
No time for anything else
What would be an advantage of choosing a sole proprietorship over other legal structures of business?
The sole proprietorship would be cheaper to set up.
Sole proprietorship is one person
legal structures - a group of individual
Limited Partneship
do not part take in managing the buisness
General Partnership
A general partnership is a business arrangement by which two or more individuals agree to share responsibilities, assets, profits, and financial and legal liabilities of a jointly-owned business.
he following are all advantages of business partnerships EXCEPT:
Partnerships shield the individual partners from debt and liability
The most significant differences between C and S corporations have to do with:
Taxation, administration, and shareholder compensation
Warren is starting a business. His biggest concerns are losing everything he owns if something goes wrong and being mired in strict taxation and administrative regulations. For those reasons, he decides to start a(n):
LLC
This business legal structure can be defined as having single taxation, limited liability, and the flexibility to let each individual in the business decide how much responsibility and participation they want. This is a(n):
LLP
The advantages of being a franchise are:
Risk reduction, brand recognition, and relative autonomy
These are the primary disadvantages for the Franchisor in a franchise business model.
Lack of control, vulnerability of trade secrets, and overexposure of the brand
What is the biggest benefit to businesses of horizontal mergers and acquisitions?
What is the biggest benefit to businesses of horizontal mergers and acquisitions?
