Economics Ch 7
general partnership
when speaking of a partnership, one is usually referring to a
four advantages of the partnership form of business ownership
Greater management skills, greater retention of competent employees, greater sources of financing, ease of formation and freedom to change
Both involve pledging to undertake another's debt should something happen
In what way is being a general partner in a business the same as being a surety
public
a corporation that is owned by the public and managed by the government is called a ___ corporation
limited partnership
at least one general partner, with unlimited financial and one partner
proverbs
bible book that gives financial advice
subchapter or subcorporation
businesses with less than 35 shareholders can incorporate as a
death, withdrawl, bankruptcy, failure to carry out a responsibility
human problems
sole proprietorship
if the owner dies the business dies as well
retain competent employees
many law and accounting firms that use partnerships
sole proprietorship
most american business firms are of this type
stockholders, board of directors, president, senior vice president
most correctly follows the corporate organizational structure
sole proprietorship
most popular business model
unlimited financial stability
not an advantage of the sole proprietorship form of business ownership
public corporations
owned by general public and managed by the government
private corporation
owned by private citizens
partnership
owners own shares of the business
false
partnerships always require a written contract
75
percent of america's businesses are sole proprietorships
greater financial resources
primary advantage of partnership over proprietorship
limited personal financial stability of stockholders
primary advantage of the corporate form of business ownership
total personal financial liability for each partner
probably the greatest disadvantage of a partnership
personal financial liability
sole proprietor is responsible to pay all obligations of the firm, even if it requires him to use his own funds
sole proprietorship
the owner is totally liable for the debts of the firm
sole proprietorship
there is only one owner
partnership
this type claims the fewest number of american business firms
high tax rate on corporate earnings, personal income tax on dividends
two main tax disadvantages of corporations
General Partnership
two or more owners
immortality and individuality
two qualities of a corporation
partnerships, unequal yoking
type of business bible most warns against
corporation
type of business most open to governmental regulation
partnership
type of business that can obtain lower interest loans
sole proprietorship
type of business that gives you most freedom
sole proprietorship
type of business with the shortest life span
20 to 30 percent
what percent of new businesses fail in their first year
general partnership agreement
who are partners? what is each partner responsible for? how are the profits to be divided?
you own 1/4 of company
you have 70,000 shares, 280,000 shares overall