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sole prorietorship advantages
-owner is boss
-owner recieves all profits
-owner knows employees & customers
-owner can act quickly in making decisions
-owner is free of much red tape (license)
-owner pays less income tax than a corperation
sole propietorship disadvantages
-owner may lack special skills and abilities
-owner may lack fund
-owner bears all losses
-owner or death may close business
partnership advantages
-skills and abilities pooled
-sources of capital increased
-credit position improved
-contribution of goodwill
(a good reputation= ^ customers)
-increased concern in business management
(owner vs employee)
-less tax burden than corporation
-retirement from management
-operating economics
(1 building not 2=low cost)
partnership disadvantages
-unlimited finanical liability
-disagreement among partners
-each partner bound by contract of others
-uncertain life
-limited sources of capital
-unsatisfactory division of profits
(amount of $ given b/w owners)
-difficulty in withdraw
(buying out)
liabilities + capital =
(owe, debt) (worth)
assets
(own)
when looking at a
Statement of Finanical Balence Sheet
look for...
how many owners are on the sheet
what gives a clue to partnership?
business names
_______ & _______ co.
corporation advantages
-available sources of capital
-limited liability of stockholders
-peramanency of existence
-ease in transfering ownership
corporation disadvantages
-taxes usually higher
(X2 taxation,$X2 in dividend)
-government regulations and reports more extensive
-record keeping for stockholders more complex
-restrictions to charter
corporations get power from ________.
charters
Profit =
retained earnings-puts $ in business-growthstock
dividends-steady capital -income stock
corporation levels:
-stockholders
(elect)
-Board of Directors- decision makers of $
(appoint)
-officers (VP,P,CEO)
Rights of Stockholders:
-to transfer ownership
-to vote on key matters
-to recieve dividends when declared
-to buy new shares in order to keep one's % of ownership
-to share in proceeds when the corporations life ends
two or more companies get together to provide a service
joint ventures
network of companies
virtual corp.
no dividends are given out
non-profit corp
given needs
quasi-public corp
buy big stock/amount -> sell less
coorerative
limited liability comp. (LLC)
-no more then 35 stockholders
-all stockholders must be citizen or born in US
-can not own more than 80%
-can not have no more than 25% listed outside of their total source listed
(LLC) 2 types of hybrid business structure
-get limited liability
-tax benefits
LLC are more complex than _________.
partnerships
Author
maevejack
ID
3326
Card Set
Business exploration
Description
personal law and business exploration
Updated
2009-12-18T03:43:45Z
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