Short questions BUS-101 Test 2

What is the difference between a general partner and a limited partner? Give an example of a situation in which a person would want to be a limited partner.

General partner is an owner who has unlimited liability and is active in managing the firm. Limited partner is an owner who invests money in the business, but enjoys limited liability. For example, Kate owns a law firm but her partner Lisa is investing her firm but she does not participated in day to day operations.

Not everyone dreams of owning their own business. Identify and describe at least three attributes of successful entrepreneurs.

The three attributes of successful entrepreneurs are self-directed, self-nurturing, and tolerant of uncertainly. self-directed is getting comfortable being your own boss. self-nurturing is believe in you own idea even when no one else does and able to replenish your own enthusiasm. tolerant of uncertainly is able to take risk.

Discuss at least three causes of small business failure.

The three causes can lead to small business failure is under pricing or overpricing goods or services, starting with too little capital and buying too much on credit.

Describe and differentiate between the three types of corporate mergers. Give an example of each type.

There are three types if corporate which are vertical, horizontal, and conglomerate. Vertical is two firms joins in different stages of related businesses. For example, a soft drink company and artificial sweeter maker merges together to have an constant supply for the soft drink company needs. Horizontal is two firms join in the same industry and allows them to diversify or expand their products. For example, a soft drink company and mineral water company merges to supply different drink products. Conglomerate unites firms in completely unrelated industries in order to diversify business operations and investments. For examples, a soft company and a snack food company would merges together.