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Flashcards in Chapter 7 Deck (16):
1

List 4 advantages of the partnership form of business ownership

1. Greater management skills
2. Greater retention of competent employees
3. Greater sources of financing
4. Ease of formation and freedom to manage

2

In what way is being a general partner in a business the same as a surety

A general is liable to pay all the debts to the business
A surety you’re undertaking another’s debts

3

What is the primary advantage of the corporate form of business ownership

Limited personal financial liability of the shareholders

4

What are some biblical principles that should be taken into account when considering the kinds of business ownership

1. Don’t be unequally yoked with someone else
2. Treat customers and partners as you would want to be treated

5

People who invest money but aren’t part of the business

Limited partner

6

When speaking of a partnership, one is usually referring to a ___________ partnership

General

7

A sole proprietor is responsible to pay all obligations of the firm, even if it requires him to use his own funds. Your text refers to this responsibility as.....

Unlimited personal financial liability

8

The sole proprietorship is a very popular form of business ownership, currently about ___% of America’s businesses are sole proprietorship

75

9

When there is only one owner

Sole proprietorship

10

Every owners financial liability is limited to his investment

Corporation

11

Owners shares of the business

Corporations

12

The owner is totally liable for the debts of the firm

Sole proprietorship

13

If the owner dies, the business dies as well

Sole proprietorship

14

Most American business firms are of this type

Sole proprietorship

15

This type claims the fewest number of American business firms

Partnerships

16

Corporation that is owned by the public and managed by the government is called a _____ corporation

Public