1. 1 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt You’ve got Sole! Howdy Partner The Corporate Ladder Buy a Franchise Other Stuff

2. 2 All together, sole proprietorships generate only about this percent of all United States sales.

3. 3 What is Six Percent?

4. 4 The biggest disadvantage of sole proprietorships.

5. 5 Liability What is unlimited personal liability? Liability is the legally bound obligation to pay debts.

6. 6 This is an advantage of a sole proprietorship.

7. 7 What is: Ease of start-up? Few regulations? Sole receiver of profit? Full control? Easy to discontinue?

8. 8 Sole proprietorships have limited access to _________, such as physical capital. Human capital can also be limited, because no one knows everything.

9. 9 What are resources?

10. 10 Sole proprietorships also lack____________. Whenever an owner closes shop due to illness, retirement, or any other reason, the business ceases to exist.

11. 11 What is permanence?

12. 12 In this type of partnership, partners share equally in both responsibility and liability.

13. 13 What is a general partnership?

14. 14 In this type of partnership, only one partner is required to be a general partner, or to have unlimited personal liability for the firm.

15. 15 What is a limited partnership?

16. 16 This is a newer type of partnership. In this form, all partners are limited partners.

17. 17 What is a limited liability partnership?

18. 18 This is one of the advantages of a partnership.

19. 19 What is: 1. Ease of Start-Up 2. Shared Decision Making and Specialization 3. Larger Pool of Capital 4. Taxation

20. 20 One of the disadvantages of partnerships

21. 21 What is: 1. Unless the partnership is a limited liability partnership, at least one partner has unlimited liability. 2. General partners are bound by each other’s actions. 3. Partnerships also have the potential for conflict.

22. 22 A legal entity, or being, owned by individual stockholders.

23. 23 What is a corporation?

24. 24 These represent a stockholder’s portion of ownership of a corporation.

25. 25 What are stocks or shares?

26. 26 A corporation which issues stock to a limited a number of people

27. 27 What is a closely held corporation?

28. 28 A corporation that buys and sells its stock on the open market

29. 29 What is a public corporation?

30. 30 Some advantages of Incorporation

31. 31 - Individual investors do not carry responsibility for the corporation’s actions. - Shares of stock are transferable, which means that stockholders can sell their stock to others for money. - Corporations have potential for more growth than other business forms. - Corporations can borrow money by selling bonds. - Corporations can hire the best available labor to create and market the best services or goods possible. - Corporations have long lives.

32. 32 A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area.

33. 33 What is a business franchise?

34. 34 Advantages of business franchises

35. 35 What are: - Management training and support - Standardized quality - National advertising programs - Financial assistance - Centralized buying power

36. 36 Disadvantages of franchises

37. 37 What is: - High franchising fees and royalties - Strict operating standards - Purchasing restrictions - Limited product line

38. 38 A business organization owned and operated by a group of individuals for their shared benefit

39. 39 What are cooperatives?

40. 40 Institutions that function like business organizations, but do not operate for profits

41. 41 What are non-profits?

42. 42 Two or more firms competing in the same market with the same good or service.

43. 43 What are horizontal mergers?

44. 44 Two or more firms involved in different stages of producing the same good or service.

45. 45 What are vertical mergers?

46. 46 a business combination merging more than three businesses that make unrelated products.

47. 47 What is a conglomerate?

48. 48 large corporations headquartered in one country that have subsidiaries throughout the world.

49. 49 What are multinationals?

50. 50 Advantages of Multinationals

51. 51 What is: - Multinationals benefit consumers by offering products worldwide. - They also spread new technologies and production methods across the globe.