Business exploration

Card Set Information

Author:
maevejack
ID:
3326
Filename:
Business exploration
Updated:
2009-12-17 22:43:45
Tags:
business
Folders:

Description:
personal law and business exploration
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  1. sole prorietorship advantages
    • -owner is boss
    • -owner recieves all profits
    • -owner knows employees & customers
    • -owner can act quickly in making decisions
    • -owner is free of much red tape (license)
    • -owner pays less income tax than a corperation
  2. sole propietorship disadvantages
    • -owner may lack special skills and abilities
    • -owner may lack fund
    • -owner bears all losses
    • -owner or death may close business
  3. partnership advantages
    • -skills and abilities pooled
    • -sources of capital increased
    • -credit position improved
    • -contribution of goodwill
    • (a good reputation= ^ customers)
    • -increased concern in business management
    • (owner vs employee)
    • -less tax burden than corporation
    • -retirement from management
    • -operating economics
    • (1 building not 2=low cost)
  4. partnership disadvantages
    • -unlimited finanical liability
    • -disagreement among partners
    • -each partner bound by contract of others
    • -uncertain life
    • -limited sources of capital
    • -unsatisfactory division of profits
    • (amount of $ given b/w owners)
    • -difficulty in withdraw
    • (buying out)
  5. liabilities + capital =
    (owe, debt) (worth)
    • assets
    • (own)
  6. when looking at a Statement of Finanical Balence Sheet look for...
    how many owners are on the sheet
  7. what gives a clue to partnership?
    • business names
    • _______ & _______ co.
  8. corporation advantages
    • -available sources of capital
    • -limited liability of stockholders
    • -peramanency of existence
    • -ease in transfering ownership
  9. corporation disadvantages
    • -taxes usually higher
    • (X2 taxation,$X2 in dividend)
    • -government regulations and reports more extensive
    • -record keeping for stockholders more complex
    • -restrictions to charter
  10. corporations get power from ________.
    charters
  11. Profit =
    • retained earnings-puts $ in business-growthstock
    • dividends-steady capital -income stock
  12. corporation levels:
    • -stockholders
    • (elect)
    • -Board of Directors- decision makers of $
    • (appoint)
    • -officers (VP,P,CEO)
  13. Rights of Stockholders:
    • -to transfer ownership
    • -to vote on key matters
    • -to recieve dividends when declared
    • -to buy new shares in order to keep one's % of ownership
    • -to share in proceeds when the corporations life ends
  14. two or more companies get together to provide a service
    joint ventures
  15. network of companies
    virtual corp.
  16. no dividends are given out
    non-profit corp
  17. given needs
    quasi-public corp
  18. buy big stock/amount -> sell less
    coorerative
  19. limited liability comp. (LLC)
    • -no more then 35 stockholders
    • -all stockholders must be citizen or born in US
    • -can not own more than 80%
    • -can not have no more than 25% listed outside of their total source listed
  20. (LLC) 2 types of hybrid business structure
    • -get limited liability
    • -tax benefits
  21. LLC are more complex than _________.
    partnerships

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