Business Organizations

A sole proprietor is a business owned and managed by

• a company

• A single individual

• Team of individuals

Which is not an advantage of a sole proprietor?

• Difficult to obtain a license and start

• Few regulations

• Owner can keep all profits

• Owner has full control of the business

A legal obligation to pay debts

• fringe benefits

• zoning laws

• liability

What are 2 disadvantages of a sole proprietor?

(a)  

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

• General Partnership

• partnership

• sole proprietor

Which is an advantage of a partnership?

• Unlimited Liability

• potential for conflict

• Ease of Start up

Which is an advantage of a franchise?

• Management training and support

• Strict operating standards

• purchasing restrictions

A legal entity, or being, owned by individual stockholders,, each of whom faces limited liability for the firm's debts.

• Partnership

• Sole Proprietorship

• Corporation

A license to form a corporation issued by a state government.

• Certificate of incorporation

• dividend

• bond

A certificate of ownership in a corporation

• Stock

• dividened

• bond