Lesson 4 Flashcards
FORM OF BUSINESS
Sole Proprietorship
Partnership
Corporation
own by one person
Sole Proprietorship
Advantage and Disadvantage of Sole Proprietorship
ADVANTAGES
•Ease of entry and exit
• Full ownership and control
• Tax savings
• Few government regulation
DISADVANTAGES
•Unlimited liability
• Limitation of raising capital
• Lack of continuity
own by two or more person
Partnership
Partnership A & D
Advantage
• Ease of formation
• Additional source of capital
• Management based
• Tax implications
Disadvantage
• Unlimited liability
• Difficulty of transferring ownership
• Lack of continuity
• Limitation in raising capital
an artificial being created by law and is a legal entity separate and distinct from its owners.
Corporation
The articles of incorporation include among others the following:
•Incorporators
•Name of the corporation
•Purpose of the corporation
•Capital stock
•Authorized shares
Corporation A & D
Advantage
• Limited liability
• Unlimited life
• Ease of transferring ownership
• Ability in raising capital
Disadvantage
• Time and cost formation
• Regulation
• Taxes(double tax)
is a general direction into which something is changing, developing, or veering toward.
Trend
shift or change in the fundamental business dynamics within an industry. Business trends tend to drive enterprise-wide strategic decisions and are the result of shifts in attitudes, values, technologies and the economic landscape.
Business Trend
is the increase in the flow of goods, services, capital, people, and ideas across international boundaries, according to the online course Global Business.
Globalization
is a business practice in which a company hires a third party to perform tasks, handle operations or provide services for the company.
Outsourcing
