Economics chap. 7 & 8

what is the greatest disadvantage of a partnership?

total personal financial liability for each partner

a sole proprietor is responsible to pay all obligations of the firm, even if it requires him to use his own funds. your text refers to this responsibility as ____________________________________

unlimited personal financial liability

If a corporation has one million shares and you wish to own one tenth of the firm, how many shares must you purchases?

100,000

What are the two biblical principles on partnership and a limited partnership?

- against unequal yoking pledging to undertake another's debt

what disadvantage of a proprietorship does a partnership form of business solve?

the ability to attract or keep qualified and experienced personnel

Name the advantage and disadvantage of a debit card

-advantage- cardholders can draw on the bank's services at anytime -disadvantage- you can be overdrawn when you forget to record debit transactions

What are the advantages of a sole proprietorship from of business ownership?

-ease in entering and exiting the market -freedom to be one's own boss -ability to keep business information secret

partnership

-owners own shares of the business -this type claims the fewest of american business firms

what are the three forms of business organization and which is the most common in the US?

-sole proprietorship, most common -partnership -incorporation

sole proprietorship

-there is only one owner -The owner is totally liable for the debts of the firm -if the owner dies, the business dies as well -most american business firms are this type

what questions are answered buy a general partnership agreement?

-who are the partners? -what is each partner responsible for? -how are the profits to be divided?

the sole proprietorship is a very popular form of business ownership. Currently, about ______ percent of America's businesses are sole proprietorship

75

when speaking of a partnership, one is usually referring to a _________________ partnership.

general

what are the key differences between a general partnership and a limited partnership?

general- two personal partner ownership Limited- one general partner and one limited partner

what are the four advantages of partnership

greater management skills, greater retention of competent employees, greater sources of financing, freedom to manage

What are the advantages of sole proprietorship?

Freedom to enter and exit the market easily, freedom from outside control, freedom to retain information, freedom from paying taxes, from being an employee

explain the biblical principle J.C. Penney applied in the foundation of his company

He treated others in business the way he wanted to be treated

sales finance company

a subsidiary company created by the large corporations to provide credit for the purchase of the corporation's products

corporation

a business entity recognized by the government as separate from its owners or stockholders

general partnership

a business firm owned by 3 or more people

overdraft protection

a financial institution's provision to extend credit to cover an overdraft

creditor

a lender to who the debt is owed

second mortage

a loan secured on a home with the equity of the house serving as collateral

in what way is being a general partner in a business the same as being a surety?

each partner takes on the other's debts to support the business

corporation

every owner's financial liability is limited to his investment

what is the primary advantage of the corporate form of business ownership?

limited financial liability of stockholders

what are the advantages of incorporation?

limited personal financial liability of stockholders, experienced management and specialized employees, continuous life, ease in raising financial capital

A corporation that is owned by the public and managed by the government is called a _____________ corporation

public

stock

shares or portions of ownership in a corporation

what is the correct corporate organizational structure?

stockholders-board of directors-president-senior vice president

what are some biblical principles that should be taken into account when considering the kinds of business ownerships?

surety-prov. 22:26-27 being equally yoked-2 corinth 6:14