Small business start up

Define business

an organization that sells goods or services to make money

3 examples of what role businesses play in the economy

creating jobs, pay taxes, provided standard of living

advantages of forming a proprietorship

really easy to form and your in control

disadvantages of forming a proprietorship

money and unlimited liability

Advantages of forming a partnership

limited liability and credibility

Disadvantages of forming a partnership

Double taxation and management shareholder

What is a partnership agreement and what’s in it

a written agreement document that outlines how a partnership will work. It includes the roles and responsibilities of each partner

How is a limited partnership different from a general partnership

General partnerships have one role for everyone and limited partnership there is two roles you can be

What is a general partnership

Has two general partners, everyone has the same role (manages the business, unlimited liability contributes financially)

What is a limited partnership

Has one limited partner and one general partner ( no management, limited liability, contributes financially)

What is a limited liability partnership

A business structure where all partner have limited liability and are not personally  responsible for the business's debts or the actions of other partners 

What is a limited partnership?

Both general partners have unlimited liability and management control. Limited partners have liability limited to their investments and no management roles

Advantages of forming a corporation

limited liability and credibility

Disadvantages to forming a corporation

Double taxation and less control for owners

What are the 3 kinds of mergers

horizontal, vertical, conglomerate

What’s a horizontal merger

When two companies in the same industry merge

What’s a vertical merger

when two companies at different stages of the supply chain (but still in same industry) merge

What’s a conglomerate merger

when two companies in unrelated industries merge

example of a horizontal merger

Pepsi and coke

example of a vertical merger

Ford and tire company

example of a conglomerate merger

General Electric and NBC

whats a merger

like a marriage, two companies coming together

what is a acquisition

Like pac - man, the bigger company buys the smaller one

what’s a divestiture

when a company sells, disposes of, or spins off a part of its business

What’s a franchise

A type of business arrangement where one company (the franchisor) grants another company or individual (the franchisee) the right to operate business using its brand name, products, and operating model

How is a franchise a combination of a corporation

It’s centralized control

How is a franchise a combination of a sole proprietorship

independent ownership

how is a franchise a combination of partnerships

shared resources

how is a franchise a combination of licensing

use of intellectual property

advantages to starting a franchise

easier access to financing and reduced risk

disadvantages of forming a franchise

Lack of independence and reputation risk