Types of Businesses Name Business Law 531 Date Professor Having a business mindset‚ taking risks‚ having patience and a good amount of financial means is just the start to starting up a business. Becoming an entrepreneur of any sort is not as easy as most people would think. An important decision an entrepreneur makes is deciding the type of business to create or go into. The business types that will be explained are sole proprietorship‚ partnership‚ limited liability partnership
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MANAGEMENT (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Conceptual Easy: Firm organization Answer: c Diff: E [i]. Which of the following statements is true? a. One of the benefits of incorporating your business is that you become entitled to receive unlimited liability. b. Sole proprietorships are subject to more regulations than corporations. c. Sole proprietorships do not have to pay corporate tax. d. All of the statements above are
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1. The process of determining whether an entrepreneur’s idea is a viable foundation for creating a successful business is known as a: 2. Porter’s five forces model assess industry attractiveness by surveying these five factors: 3. The strongest of the five forces in most industries is: 4. The force from the five forces model that considers economies of scale‚ initial capital requirements‚ cost advantages relevant to company size‚ and lack of brand loyalty is the: 5. The primary purpose of the
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of Work-Life Balance in a Diverse Workforce The use of diversity programs has become the rising standard among professional businesses. Through the use of these programs‚ employers not only abide by legal requirements of local‚ state‚ and federal laws‚ but also help to increase their consumer base‚ workforce efficiency and effectiveness‚ and reduce employee turnover. One of the major components of successfully leveraging diversity is through the right work-life balance. This requires the ability
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Memorandum To: Owner From: RE: Business Type Date: October 8th‚ 2012 Changing the type of business structure is not a small consideration. You have operated for years as a Sole Proprietorship‚ but it appears that you have outgrown that particular business type and may benefit from changing to a different type of business. Based upon our previous conversation‚ I will summarize my interpretation of your business concerns in the bullets below: • Liability. You are concerned
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exists between persons when one‚ called the agent‚ is considered in law to represent the other‚ called the principal‚ in such a way as to be able to affect the principal’s legal position in resects of strangers to the relationship by the making of contracts or the disposition of property’. The Australian High Court in International Harvester Co of Australia Pty Ltd v Carrigan’s Hazeldene Pastoral Co2 defined agency as ‘a word used in law to connote an authority or capacity in one person to create legal
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CHAPER 1 1. Which of the following statements is CORRECT? Answer One disadvantage of operating as a corporation rather than as a partnership is that corporate shareholders are exposed to more personal liability than partners. There is no good reason to expect a firm ’s stockholders and bondholders to react differently to the types of new asset investments a firm makes. Bondholders are generally more willing than stockholders to have managers invest in risky projects with high potential
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opening a new business. There are numerous aspects to controlling a business‚ but then again the most significant and crucial aspect is to decide the category of business you want to start and its model. When starting up a new business‚ an individual has the opportunity of starting a sole proprietorship‚ partnership‚ corporation‚ or LLC (Limited Liability Company). A sole proprietorship is a company that is run by a sole owner. The sole proprietor is the sole possessor of the business and is the only
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17 Small Business Organizations N.B.: TYPE indicates that a question is new‚ modified‚ or unchanged‚ as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. = A question included in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A sole proprietor does not own the entire business. ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 2. In choosing a form of business organization
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relationships are formed when a principal (employer) and the agent (person acting on the principals behalf) agree on a working arrangement in which the agent acts on the behalf of the principal. The Agency is governed by a large body of common law known as agency law (Cheeseman‚ 2010). In this scenario the local electronic superstore is the principal and Robert is the agent doing the delivering. The principal-agent relationship is formed when an employer hires an employee and gives that employee
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