chapter+8

chapter 8.1 adv and dis adv of sole proprietorship Advantages could be you dont need anyones permission, you make the rules, cant fight with your fellow owner disadvantages are less money, maybe two heads are better than one, your friend might have connections you dont have

chapter 8.2 questions 1-4
 * partnership- a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
 * general partnership- partners are equal in both responsibility ands liability
 * limited partnership- only one partner is required to be a general partner
 * limited liability partnerships(llp)- all partners are limited partners
 * articles of partnership- a partnership agreement
 * uniform partnership act(UPA)- act ordering common ownership interests, profit and loss sharing and shared management responsibilities in a partnership.
 * assets- money and other valuables belonging to an individual or business
 * 1) People become partners so they can pool there resources together in order to have a more successful business. A lot of real estates agencies have partners.
 * 2) All of the different partnerships differ in what kind of control they have, or the amount of liability involved per partner.
 * 3) The articles of partnership outlines how partners will share profits or losses.
 * 4) The uniform partnership act is there to order common ownership interests, profit and loss sharing, and shared management responsibilities.

Chapter 8.3 questions 1-7
 * corporation- a legal entity owned by individual stockholders
 * stock- a certificate of ownership in a corporation
 * closely held corporation- corporation that issues stock to only a few people, often family members
 * publicly held corporation- corporation that sells stock on the open market
 * bond- a formal contract to repay borrowed money with interests at fixed intervals
 * certificate of incorporation- license to form a corporation issued by state government
 * dividend- the portion of corporation profits paid out to stockholders
 * horizontal merger- the combination of two or more firms competing in the same market with the same good or service
 * vertical merger- the combination of two or more firms involved in different stages of producing the same good or service
 * conglomerate- business combination merging more than three businesses that make unrelated products
 * 1) A corporation is different from a sole proprietorship in that a corporation is owned by many individual stockholders and sole proprietorship is when one person owns a business.
 * 2) Closely held corporation is when the only stock goes to family members and publicly held is when anyone can buy it.
 * 3) A certificate of incorporation must have the corporate name, statement of purpose, headquarters business address and ect.
 * 4) Stock is a certificate of ownership in a corporation.
 * 5) Stockholders must pay taxes because it is still money they are making and if they didn't pay then it would just be free money.
 * 6) A merger is when two companies come together to form one and a conglomerate is when more than three businesses come together that make a variety of unrelated products.
 * 7) Multinational corporations have business throughout the world.

Chapter 8.4 questions 1-6
 * 1) A business franchise works by an independent business that pays fees to a parent company in return for exclusive rights to sell a certain product.
 * 2) Royalties are a share of earnings given as a payment.
 * 3) A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit.
 * 4) They all differ by the different things they do and sell. Some help consumers while others help the company.
 * 5) A nonprofit organization is an institution that functions much like a business, but does not operate for the purpose of generating profits.
 * 6) All of these organizations are there to help companies expand in their certain areas.

Chapter 8 review 1-8 10-17
 * 1) vertical merger
 * 2) liability
 * 3) corporation
 * 4) sole proprietorship
 * 5) consumer cooperative
 * 6) conglomerate
 * 7) royalties
 * 8) general partnership
 * 9) no questions
 * 10) The sole proprietor can choose where to open the business, what to name it and what the want to sell.
 * 11) The advantages of having a partner are there is more money and business contacts you can use.
 * 12) A corporation brings money to the stockholders that own it. Or it could lose them a lot of money if it is not run properly.
 * 13) Its relatively easy to open a franchise but the fees that come with it are one of the top disadvantages.
 * 14) A horizontal merger is when two or more firms competing in the same market come together while a vertical merger is two or more firms involved in different processes of the same product merge. Conglomerates is when three or more businesses merge that make different products.
 * 15) Multinational organizations is when one company is spread out around the world.
 * 16) The advantage of a cooperative is that all of the owners want the same thing and they all have the same business plan.
 * 17) The ordinances and regulations that apply to businesses are made so no companies can cheat the system.