Chapter 7 Flashcards
(16 cards)
List 4 advantages of the partnership form of business ownership
- Greater management skills
- Greater retention of competent employees
- Greater sources of financing
- Ease of formation and freedom to manage
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
What is the primary advantage of the corporate form of business ownership
Limited personal financial liability of the shareholders
What are some biblical principles that should be taken into account when considering the kinds of business ownership
- Don’t be unequally yoked with someone else
2. Treat customers and partners as you would want to be treated
People who invest money but aren’t part of the business
Limited partner
When speaking of a partnership, one is usually referring to a ___________ partnership
General
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
The sole proprietorship is a very popular form of business ownership, currently about ___% of America’s businesses are sole proprietorship
75
When there is only one owner
Sole proprietorship
Every owners financial liability is limited to his investment
Corporation
Owners shares of the business
Corporations
The owner is totally liable for the debts of the firm
Sole proprietorship
If the owner dies, the business dies as well
Sole proprietorship
Most American business firms are of this type
Sole proprietorship
This type claims the fewest number of American business firms
Partnerships
Corporation that is owned by the public and managed by the government is called a _____ corporation
Public
