Topic 5 Lessons 1-3 Flashcard

Front

Which best describes a sole proprietorship?

Back

business owned by an individual

Front

As a sole proprietor, offering employees "non-wage compensation" (vacation time, holiday, or sick leave) is hard. How does this lack of resources affect your ability to run a business?

Back

It makes it difficult for the owner to attract good employees.

Front

Why is liability the biggest disadvantage of a sole proprietorship?

Back

The owner could lose personal property if the business fails.

Front

Which advantage of a sole proprietorship could also be a disadvantage?

Back

A sole proprietor has full control.

Front

Why would someone be willing to share the economic right to business ownership by forming a partnership?

Back

to limit liability

Front

TRUE OR FALSE: It is easier to raise money as a sole proprietor than in a partnership.

Back

FALSE

Front

A firm that is owned by two or more individuals, where profits are split.

Back

partnership

Front

This business franchise is a semi-independent entity that pays fees to a parent company.

Back

business franchise

Front

True or False: One of the advantages of a corporation is that it is easy to raise money.

Back

TRUE

Front

What is a franchise?

Back

An agreement to operate a business under a recognized brand