Economics Unit 2

This type of business is considered a separate legal entity in the eyes of the law.  It is owned by shareholders.

• Cooperative
• Company
• Partnership
• Sole Proprietorship

Which of the following is not an advantage of a sole proprietorship?

• Easy to start
• Owner is their own boss
• Owner has unlimited liability
• Owner receives all the profits

One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.

• True
• False

-General Partner provides business skill/talent
-Silent Partner provides capital
-Silent Partner enjoys limited input

• Partnership
• Limited Liability Company
• Sole Trader
• Joint Venture

-Owned by a single owner
-No separation between owner and business
-Unlimited personal liability

• Corporation
• Limited Liability Company
• Partnership
• Sole Proprietorship

-Publicly traded company
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital

• Corporation
• Limited Liability Company
• Partnership
• Cooperative

-Two or more owners
-Unlimited Personal Liability
-No separation between owners and business

• Limited Partnership
• Corporation
• Cooperative
• Partnership

-Subject to high start-up and royalty fees
-Must adhere to corporate standards
-Privately owned locations but associated with a larger, more recognizable brand

• Franchise
• Limited Partnership
• Corporation
• Joint Venture

In a Limited Partnership, the limited partner is also known as the:

• Financier 
• Monopolist
• Venture Capitalist
• Silent Partner

_______________is a legal term for being held accountable

• Liability

• Assets

• Bankruptcy

• Claim