1. Mr. Kallusingh

2.  A business owned and operated by one person  They are typically small in size and usually require few qualifications  Advantages- easy start up, easy management, controls all profits, business is exempt from taxes, your own boss, ease of leaving  Disadvantages- unlimited liability, raising financial capital, having enough capital for inventory and labor, limited managerial experience, finding qualified employees, limited life

3.  Make up 90 percent of all sales in America  Is a separate legal entity that can buy/sell property, enter contracts, and be sued  Has shareholders that invest in the business  Advantages- easily raise capital, professional management, limited liability, unlimited life  Disadvantages- difficulty of receiving a charter, owners lake of control in day-to-day operations, double taxation, more government regulation

4.  General- all partners are involved day-to-day activities or Limited- at least one partner is not involved in day-to-day activities  Easy to start, can have paperwork to decide the division of power  Advantages- ease of establishment, maybe ease of management due to multiple owners, single taxation, easier to gain financial capital, easier management due to size, can attract employees due to specialization

5.  Disadvantages- liable for partner decisions, limited life, conflict amongst partners, all people are liable for debts

6.  Blends parts of corporations and partnerships  Has the limited liability of corps and single tax of partnerships  Well suited for single owners that do not want to have all the liability  Advantages- tax choice, less paperwork than a corporation, do not have to deal with investors  Disadvantages- lack of government protection, more difficult to raise capital, management issues

7.  Mergers take place to grow faster, become more efficient, make a better product, eliminate a rival, or change its image  Horizontal Merger- two companies that make a similar product join forces  Vertical Merger- two companies that are involved in different steps of manufacturing or marketing merge; automaker and tire company  Conglomerate- firm with at least four different businesses making unrelated products

8.  Non-Profit Organization- is a business that tries to promote the interest of its members instead of turning a profit  Multi-National Organization- corporation that has manufacturing or service operations in different countries  Franchises- the practice of one firm using another’s successful business model

9.  Bond is a written promise to repay the amount borrowed at a later date with interest  Stock is like buying a portion of a company  Common Stock- people owning this can vote on board of directors  Preferred Stock- people owning this can not vote on board of directors, but get paid dividends first