Business Test

Partnership

Disadvantage: Need Partnership Agreement Partners share profits

Corporation

Disadvantage: Taxed on their profits Closely regulated by Government

FRANCHISE

A business relationship in which an owner (the franchisor) licenses others (the franchisees) to operate outlets using business concepts, property, trademarks and trade names owned by the franchisor.

What would be the safest form of business organization for a new, inexperienced business owner?

A franchise would probably be safest since the parent company (the franchisor) offers training and assistance in starting and running the business

CORPORATION

A legal entity that is separate and distinct from its owners.

Corporation

Advantage: Can raise money by selling stock Limited liability

Sole Proprietorship

Advantage: Easy to start Owner keeps all of profits

Franchise

Advantage; Easy to start Help from parent company

Partnership

Advantage; Relatively easy to start Partners share skills and risks

Name some similarities between sole proprietorships and franchises.

Both are easy to start.

Name some similarities between corporations and franchises

Both corporations and franchises have to have written agreements prior to starting—a corporate charter for a corporation, and a franchise agreement (contract) for a franchise

Name some similarities between partnerships and corporations

Both partnerships and corporations have more than one owner.

Name some similarities between sole proprietorships and partnerships

Both sole proprietorships and partnerships are easy to start

Name 3 functions of accounting

Collecting Payments, Paying Taxes, Writing Payroll Checks, Preparing Income Statements, Purchasing Inventory

Name 3 functions for information technology.

Computer security, Installing hardware, Maintaining hardware, Maintaining email accounts

Sole Proprietorship

Disadvantage: Difficult to obtain funding Owner has full responsibility

Franchise

Disadvantage: Franchisor may be strict Limited in products or services sold

Name some similarities between partnerships and franchises.

In both partnerships and franchises, skills and talents needed to run the business can be shared—in the partnership by the partners, and in the franchise from the parent company. In both partnerships and franchises, the owners only receive part of the profits.

Name 3 functions of management

Leading/Motivating, Planning/Goal Setting, Budgeting, Directing

Name 3 functions of marketing.

Pricing products, Working with Customers Selling, Product Placement, Distribution of goods

Human Resources

The activities that deal with the hiring, firing, training and other personnel (employee) issues

Marketing

The process of creating, promoting, and presenting a product to the consumers

Information Technology

The process of developing, installing, and implementing computer information systems and applications. IT includes the support and maintenance of computer hardware and software.

Management

The process of leading and directing all or part of an organization

Accounting

The process of recording and reporting the financial data for a business.

What are needs?

Things that are necessary for survival.

PARTNERSHIP

is a type of business entity in partners share with each other the profits or losses of the business undertaking in which all have invested.

SOLE PROPRIETOR

is someone who owns an unincorporated business by himself or herself.

What are wants?

not necessary for our survival but add pleasure and comfort to our lives

What does businesses fulfill?

the needs and wants of the consumers by selling goods or services or both.