Forms of Ownership & Entrepreneurship: BEP201-8

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Grade 10 Business

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20 Terms

1
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What are the 5 types of Ownership?

Sole Proprietorship, Partnership, Corporation, Co-operative, Franchise

2
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What is a Sole Proprietorship?

A business owned by 1 person who is known as the proprietor

3
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Sole Proprietorship - What are the Pros?

  • Easy and inexpensive to set up

  • Full Control - Makes all the decisions

  • Keep ALL Profits

  • Quick decision making, don’t need to consult others

4
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Sole Proprietorship - What are the Cons?

  • Limited access to funding - harder to get investors

  • Heavy workload- handle all responsibilities

  • Owner responsible for all losses - unlimited liability

  • Growth may be limited

5
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What is a Partnership?

Type of business in which two or more individuals share the costs and responsibilities of owning and operating it

6
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Partnership - What are the Pros?

  • Easy to start

  • Shared financial burden

  • Combined skills & expertise

  • Profits taxed as personal income - not through corporate tax

7
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Partnership - What are the Cons?

  • Profit Sharing

  • Unlimited liability(in general partnership)

  • Personal issues, values, operations

  • If a partner wants to leave, may be difficult unless there’s an agreement in place

8
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What is a Corporation?

A business granted legal status with rights, privileges, and liabilities that are distinct from those of the people who work for the business

9
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What is a dividend?

Dividends are regular payments of profit made to investors who own a company’s stock

10
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Name the 4 types of Corporations

Private Corporations, Public Corporations, Crown Corporations, Municipal Corporations

11
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What is a Co-operative?

A business owned by workers or members who buy the products or use the services that the business offers. Motivated by service and not profit

12
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Explain the benefits of Retail Co-Operative

  • You still own and make all business decisions

  • Instead of competing with larger businesses, you automatically gain a reputation through the co-op

  • Buy products at a lower price, but use their branding while benefiting from national advertising

  • All profits go to you

13
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What are the cons of a retail cooperative?

  • Slow decision making

  • Balancing member interests

  • Market competition

  • awareness

  • member engagement

14
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What is a Worker Co-operative?

Employees own and run the business together. They share profits and have an equal say in decisions

15
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Pros & Cons of Consumer Co-op

Benefits:

  • Lower Prices

  • Ethical Products

  • Decision Making

Main Drawback

  • Membership fees

  • Less Independence

  • Slower Decisions

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Pros & Cons of Retail Co-op

Benefits

  • Bulk Buying

  • Marketing

  • Support

Drawbacks

  • Less Independence

17
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Pros & Cons of Worker Co-op

Benefits

  • Fair Wages

  • Democratic Decision Making

Drawbacks

  • Slower Decisions

18
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What is a Franchise?

A franchise is a business model in which an independent entity – the franchisee – is entitled to set up a branch on an established brand.

19
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Explain the process of a Franchise

A franchise is a business model where one person or company, called the franchisor, allows other people or companies, called franchisees, to open and operate a business using its name, products, and branding.

20
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State the challenges a Franchisee can face

  • Limited Freedom & Flexibility

  • Strict Rules

  • Competition with other franchises

  • Brand Reputation