Ch 5 Review - Foundations

Easiest form of ownership to start

• sole proprietorship
• partnership
• corporation
• franchise

Must sign a written contract to operate and sell products in a specific way under a certain name.

• sole proprietorship
• partnership
• corporation
• franchise

Must create Articles of Incorporation in order to be formed.

• sole proprietorship
• partnership
• corporation
• franchise

Most difficult to form

• sole proprietorship
• partnership
• corporation
• franchise

Advantage is limited liability

• sole proprietorship
• partnership
• corporation
• franchise

Often has by-laws

• sole proprietorship
• partnership
• corporation
• franchise

Disadvantage is being responsible for others' decisions

• sole proprietorship
• partnership
• corporation
• franchise

Disadvantage is having to split the profits

• sole proprietorship
• partnership
• corporation
• franchise

Is taxed twice

• sole proprietorship
• partnership
• corporation
• franchise

Owners are called Stockholders or Shareholders

• sole proprietorship
• partnership
• corporation
• franchise