intro to business

Question 1

cooperative

Answer 1

a business owned and controlled by the people who use it- producers, consumers, or workers with similar needs who pool their resources for mutual gain

Question 2

sole proprietorship

Answer 2

A business owned by one person, and usually managed, by one person

Question 3

limited partnership

Answer 3

A partnership with one or more general partners and one or more limited partners

Question 4

sole proprietorship disadvantage

Answer 4

1. unlimited liability
2. limited financial resources
3. management difficulties
4. overwhelming time commitment
5. few fringe benefits
6. limited growth
7. limited life span

Question 5

limited partner

Answer 5

an owner who invest money in the business but does not have any management responsibility or liability for losses beyond the investment

Question 6

advantages of partnership

Answer 6

• more financial resources
• shared management and pooled/complementary skills and knowledge
• longer survival
• no special taxes

Question 7

disadvantage of partnership

Answer 7

• unlimited liability
• division of profits
• disagreements among partners
• difficult to terminate

Question 8

advantages of a corporation

Answer 8

• limited liability
• ability to raise more money for investment
• size
• perpetual life
• ease of ownership change
  -ease of attracting talented employees
• separation of ownership from management

Question 9

S Corporation

Answer 9

A unique government creation that looks like a corporation but is taxed like sole proprietor ships and partnerships
- stakeholder, director, and partnerships
- no more than 100 shareholder

Question 10

Franchises

Answer 10

An arrangement whereby someone with a good for business ( franchisor) sells the right to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory

Question 11

advantages of Franchise

Answer 11

• management and marketing assistance
• personal ownership
• nationally recognized name
• financial advice and assistance
• lower failure rate

Question 12

entrepreneur

Answer 12

a person who risk time and money to start and manage a business

Question 13

Trade Bloc

Answer 13

a group of countries that work together to promote trade with one another
ex: UNSCAT

Question 14

McDonald - Production Adaption

Answer 14

Multi-domestic
- india & china

Question 15

WTO

Answer 15

World Trade Organization- an international body that enforces agreements that reduce barriers to international trade; successor to GATT

Question 16

Partnership

Answer 16

a legal form of business with two or more owners