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.
