Economics

Why do economists say that corporations are subject to double taxation?

Corporations must pay taxes on their income because the law considers corporations legal entities separate from their owners. Corporations also pay dividends to stockholders, and stockholders must pay personal income taxes one them.

What is a Sole Proprietorship?

A business owned and managed by a single individual, which the lone entrepreneur earns all of the firm's profits and responsible for all of its debts.

What government agency's regulations most likely require this worker to wear protective gear?

OSHA

Julia plans to become a sole proprietor who upholsters furniture in her home. How does she become a sole proprietor?

Obtain a business licences

What are the advantages and disadvantages of a corporation?

Advantages - Operate indefinitely, owners have limited liability, owners receive income, and raise a lot of capital. Disadvantages- Double taxation, expensive startup, can lose control, and highly regulated.

What are the advantages and disadvantages of being a sole proprietor?

Advantages- easy start and end, relatively few regulations, sole receiver of profit, and full control Disadvantages- unlimited personal liability, limited access to resources and lack of permanence

What are advantages and disadvantages of Multinationals?

Advantages- provides jobs and products around the world, provide help to poorer nations, and spreads new technologies and production methods across the globe. Disadvantages- Unduly influence culture and politics, and the jobs are marked by low wages and poor working conditions

What is a glass ceiling?

An unofficial barrier that sometimes prevents some women and minorities from advancing to the top rank of or organizations dominated by white men.

What were the main goals of the early labor movement in the United States?

Better working conditions, higher wages, and shorter hours.

What characteristics do corporations share with nonprofits?

Both use lobbyists to influence law makers.

What is the structure of a corporation

Employees managers CEO Board of directors Stock holders

What is liability in different types of partnerships?

General - shares liability Limited - only one person responsible - has unlimited liability Limited liability - like doctors offices

Under what circumstances might stockholders be displeased with a corporation's performance?

If the company stocks lose value on a stock - they will have to explain...

Why might people structure their business as a limited liability partnership rather than a limited partnership.

It limits the personal responsibility if one of them is sued.

Which government bureau would most likely be responsible for regulating wastes in a nuclear power plant?

Nuclear regulatory commission

Shania and Nick own a convenience store together. They share equal responsibility and liability for their business, and each person receives fifty percent of the profits. What kind of business organization is it?

Partnership

What does a cooperative have in common with a corporation?

Pay out earnings to owners, both make profit, and owned by stockholders.

What is a key reason that an entrepreneur might choose to establish a corporation rather than a partnership or a sole proprietorship?

Permanence, raise more capital, more potential growth, can raise money by borrowing it, and is transferable.

What incentive does a parent company h ave for providing training and support to a franchise owner?

Royalties might increase because better trained franchise owners will make more money.

What are potential disadvantages of sole proprietorship?

Unlimited personal liability, limited access to resources, no investors, and lack of permanence.