Basics of Business Unit 1

The sole proprietor must gain permission from the board of directors to sell the business.

A business that moves goods from one business to another

SBA is an acronym that stands for the

A business that is owned and run by two or more people.

An organization that is owned and operated by its members

Manufacturers turn raw or processed goods into .

The most common type of business in the United States are

This gives rights to artists to own their creations.

The corporation is responsible for paying corporate taxes on any profit the company makes.

Granted by the federal government, this is the sole right to own an invention.

Frito-Lay’s Doritos^®, Kellogg’s Rice Krispies Treats^®, and Visa^® are examples of what?

About half of all businesses in the United States are sole proprietorships.

The owner is responsible for the company’s debts

If the company should experience a financial loss, stockholder would have unlimited liability.

A small business serves a limited geographic area and employs no more than 100 people.

The owner of a corporation has full power of management and control of the business.

An advantage of a corporation is

Unlimited liability means

Consumers usually deal directly with

The most common kind of business is a corporation and it is the easiest to establish.

3 main types of business organizations: sole proprietorships, partnerships, and ?

About four out of five businesses fail in their first how many year(s)?

A group of persons elected by the stockholders to manage a corporation is called a

An example of a franchise is

Nonprofit organizations

Top source of capital for a sole proprietorship is friends and family.

A corporation provides you the advantage of limited liability.

The owner of a sole proprietorship is not personally responsible for the debts of the business.

A major disadvantage of owning a sole proprietorship is that the owner has limited liability.

The business ownership that has a continuous existence seperate of its members is called a

Investors won’t usually invest in a sole proprietorship.

Sole proprietor pays taxes on income from the business as part of his/her personal income tax.

An advantage of a partnership is

Also known as distributors

A person who purchasing a franchise decides how the business will be advertised and managed.

A type of business that focuses on providing a service, not on making a profit

A contractual agreement to use the name & sell the products/services of a company in an area

Sue and Sally own a business together. This is an example of a sole proprietorship.

Banks are more willing to lend money to partnerships than sole proprietorships.

One disadvantage that corporations face is

The 3 main types of business organizations: sole proprietorships, partnerships, & corporations.

What form of business has the least amount of taxation and government regulation?

Right/license granted by a company to an individual/group to sell products in a specific area

A primary disadvantage of a corporation is the cost of running the corporate form of business.

One of the biggest obstacles in starting a business is

Entrepreneurship is the process of

In order to start a corporation, the first thing one must do is

All responsibilities and business decisions fall on the shoulders of the sole proprietor.

John opens a McDonalds in West Fargo. This is an example of

Processed goods include all of the following except

Retailers get their goods from

Most U.S. businesses are