2. 1.Describe the characteristics, advantages & disadvantages of the sole proprietorship. 2.Understand the advantages & disadvantages of the partnership. 3.Describe the formation, structure, features, advantages & disadvantages of a corporation.

3. 1. sole proprietorship12. dividend 2. unlimited liability13. bond 3. inventory14. principal 4. limited life15. interest 5. partnership16. double taxation 6. limited partnership 7. bankruptcy 8. corporation 9. charter 10. stock 11. stockholder/shareholder

5. 1.Most common form of business org. in the U.S. 2.Owned & run by 1 person 3.Smallest in size 4.Easiest to start up

6. 1.Ease of start up 2.Ease of management 3.Ease of getting out 4.Do not have to share the profits 5.Don’t have to pay separate business taxes 6.Psychological satisfaction

7. 1.Unlimited liability 2.Difficult to raise financial capital 3.Size & efficiency 4.Limited life 5.Limited managerial experience 6.Difficult to attract qualified employees

9. 1.Jointly owned by 2 or more persons 2.Least numerous form 3.General part – all partners responsible 4.Limited – at least 1 partner isn’t active in running the business

10. 1.Ease of establishment 2.Ease of management 3.Lack of special taxes 4.Can attract financial capital 5.Slightly larger size/more efficient 6.Easier to attract top talent

11. 1.Each partner fully responsible for the acts of all other partners (General) 2.Conflict can occur between partners 3.Limited life

13. 1.Recognized by law as a separate legal entity having the rights an individual has (buy/sell, enter into legal contracts, sue/be sued) 2.Charter issued by Nat’l or State govt 3.Specifies # of shares of stock 4.Shareholders will receive dividends if the business makes a profit

14. 1.Common stock – basic ownership, receive a vote for each share 2.Preferred stock – nonvoting shares of ownership 3.Most shareholders do not vote; they turn their votes over to someone else 4.Account for 90% of all sales

15. 1.Ease of raising financial capital 2.Hire professional managers to run it 3.Limited liability 4.Unlimited life 5.Ease of transferring ownership

16. 1.Difficulty & expense of getting a charter 2.Double taxation 3.Subject to more govt regulation 4.Owners have little say in how the business is run

18. 1.Describe the characteristics, advantages & disadvantages of the sole proprietorship. 2.Understand the advantages & disadvantages of the partnership. 3.Describe the formation, structure, features, advantages & disadvantages of a corporation.

19. 1. sole proprietorship12. dividend 2. unlimited liability13. bond 3. inventory14. principal 4. limited life15. interest 5. partnership16. double taxation 6. limited partnership 7. bankruptcy 8. corporation 9. charter 10. stock 11. stockholder/shareholder

21. 1.Owned & run by one person 2.Earn 1/5 of total income of all businesses 3.Easiest form to start up 4.Most numerous & profitable of all organizations but smallest in size

22. 1.Ease of start up 2.Ease of management 3.Do not have to share the profits 4.Don’t have to pay separate business income taxes 5.Psychological satisfaction 6.Ease of getting out

23. 1.Difficulty in raising financial capital 2.Has limited life 3.Limited managerial experience 4.Unlimited liability 5.Smaller size & less efficiency 6.Difficulty of attracting qualified employees

25. 1.Jointly owned by 2 or more persons 2.General – all partners are responsible for management/financial obligations 3.Limited – at least 1 partner is not active in running the business 4.Easy to start up 5.Least numerous form

26. 1.Ease of establishment 2.Partners bring different areas of expertise 3.Lack of special taxes 4.Can attract more financial capital 5.More efficient operations 6.Easier attracting top talent to the business 7.Ease of management

27. 1.Each partner fully responsible for acts of all other partners (General) 2.Conflict can occur between partners 3.Limited life

29. 1.Recognized by law as separate legal entity having all the rights of an individual (buy/sell property, engage in contracts, sue/be sued) 2.Makes up 1/5 of all businesses & accounts for 90% of total sales 3.Must file for permission from the govt & obtain a charter 4. Charter specifies # of shares of stock 5.Stockholders own stock & can receive dividends if the business is successful

30. Common stock – basic ownership of a corp, receive 1 vote for each share Preferred stock – nonvoting shares of ownership (receive dividends before common stockholders) Those who own few shares often do not vote but turn their votes over to someone else

31. 1.Ease of raising financial capital 2.Hire professional managers to run it 3.Limited liability 4.Unlimited life – continues to exist if ownership changes 5.Ease of transferring ownership

32. 1.Difficulty & expense of getting a charter 2.Owners have little say in how the business is run 3.Double taxation – pay taxes as corporate profits & personal income 4.Subject to more govt regulation