Entrepreneurship + Forms of Business Ownership

Question 1

Limited liability

Answer 1

• not responsible for business debts

- not responsible for obligations of that corporations

Question 2

Unlimited liability

Answer 2

• responsible for all legal obligations

😁😁😁😁😁😁😁😁😁😁
#veryscary
*everything of yours could be taken away

Question 3

General partner

Answer 3

Working with one other person

Question 4

Limited partner

Answer 4

Involves about 2 or more people

Question 5

Board of directors

Answer 5

Multiple please are running it

All as equal as the other

Question 6

Sole-proprietorship

Answer 6

Someone who owns their own business

• dog walking, lawn care, babysitting

Question 7

Advantages of a sole-proprietorship

Answer 7

• no legal paperwork

- less taxes

Question 8

Disadvantages of a sole-proprietorship

Answer 8

• can be sued for everything you have (even personally!)

- larger workload

Question 9

Partnership

Answer 9

• a business where very few people own

Question 10

Advantages of a partnership

Answer 10

• taxed only once
• no legal forms
• less of a workload (vs running it individually)

Question 11

Disadvantages of a partnership

Answer 11

• more people to share profits with

- can easily dissolve

Question 12

Corporation

Answer 12

Independent legal company

Often time, have share holders

Question 13

Advantages of a corporation

Answer 13

• more money for investments
• limited liability
• separates management
• perpetual life
• large in size

Question 14

Disadvantages of a corporation

Answer 14

• initial cost
• paperwork
• 2 TAX RETURNS ( lose a ton of income)
• hard to end

Question 15

Franchise

Answer 15

” chain stores” multiple people own different locations of the exact same thing

Question 16

Advantages of a franchise

Answer 16

• Great success right (compared to non franchise places)

- corporate helps a ton (u need to know very little to open one)

Question 17

Disadvantages of a franchise

Answer 17

• can’t do what ever u want

- start up free

Question 18

Corporations are taxed 2 times, for what??

Answer 18

• federal taxes

- state taxes

Question 19

What form of ownership makes the most money in the US??

Answer 19

Corporate

Question 20

5 common traits of an entrepreneur

Answer 20

• persistent
• creative
• independent
• risk takers
• willing to fail

Question 21

General partnership

Answer 21

• all equal

- label for each others actions

Question 22

Limited partnership

Answer 22

• often time investor

- who don’t own or have much say in the corporation

Question 23

Vertical merge

Answer 23

• 2 companies that merge naturally

Ex.
Nike buys out the company that makes the shoe laces they use in their shoes

Question 24

Horizontal merge

Answer 24

• 2 similar businesses become 1

Ex
Nike and Adidas becoming one

Question 25

Conglomerate Merge

Answer 25

• 2 totally different companies becoming one

Ex
Kraft and toblerone (chocolate)

Kraft and Hane’s (underwear)

Question 26

Royalty fee

Answer 26

• amount of sales given back to corporate

Question 27

Renewal fee

Answer 27

• payed every couple of years to maintain the persons absoltky to run that store

Question 28

Entrepreneur

Answer 28

• organized and operates a business

- larger then normal risks

Question 29

Aquisition

Answer 29

• buy entire company

• including their debts