Business Organizations

Poll

Have you thought about starting your own business someday?

• yes.

• no.

Categorize

Options (10)

Full control.

Start-up costs low

Relatively few regulations.

Full receiver of profits.

Taxation

Easy to discontinue.

Unlimited liability.

Limited capital ($) for expansion.

Lack of permanence.

• Hard to find good employees

  • (fringe benefits)

What are the positives and negatives of a sole proprietorship?

Positive

Negative

Multiple Choice

Share equal responsibility and liability.

• general partnership

• limited partnership

Multiple Choice

Only one partner is require to be a general partner.

• general partnership

• limited partnership

Categorize

Options (6)

low start-up costs

shared decision making

specialization/ complementary skills

larger pool of assests for expansion

unlimited liability

potential for conflict

Categorize the positives and negatives of a partnership.

positivies

negatives

Categorize

Options (9)

day to day operations

titles like CEO and CFO

identifies and manages corporate risk

oversees strategy and performance of management

overseas committees such as audits, compensation, or corporate governance committees

approves policy recommendations

make decisions in the best interest of the shareholders

people who voluntarily invest by buying stock

right to elect directors and approve mergers and acquisitions

Categorize the correct roles of each corporate structure.

Management

Board of Directors

Shareholders

Categorize

Options (9)

limited liability

capital investment and expansion easy with stock offering

stockholders don't carry responsibility for corporation's actions.

easy to raise money to purchase capital

long life

difficult and expensive to start-up

double taxation (corporate and individual)

loss of control to stockholders

more regulations

Categorize the positives and negatives of corporations.

positives

negatives

Categorize

Options (8)

built in reputation

management and training support

standardized quality

national advirtising

high franchise/ royalty fees

strict operating standards

purchasing restrictions

limited product line

Categorize the positives and negatives of a franchise.

positives

negatives

Match

Match the following types of business organization.

• Business organization run by a single individual

• business owned by two or more persons

• business structure that limits personal liability

• business model that allows individuals to operate under a brand

• legal entity that is separate from its owners

sole proprietorship

partnership

limited liability company

franchise

corporation

• sole proprietorship

• partnership

• limited liability company

• franchise

• corporation

Match

Match the following

• Financial organization that provides banking services to a group of community members or employees.

• functions like a business, but does not operate or profit

• voluntary association formed to carry on some kind of economic activity that will benefit it's members

• an organization of workers that form to represent its member's interests in employment matters

• people in a specialized occupation intereste din improving the working conditions, skill levels, and public perceptions of the profession

credit union

non-profit organization

cooperative

labor union

professional organization

• credit union

• non-profit organization

• cooperative

• labor union

• professional organization