Test 7 Flashcards
how is responsibility shared in a partnership?
there is equal responsibility in a general partnership. in a limited partnership, more responsibility is placed on the person(s) who is involved in the daily operations.
why do corporations generally have the largest profits of any form of business?
it is easier to raise capital because of the size of the business. Corporations also have unlimited life.
which of the 4 types of business do you think has the greatest advantages and fewest disadvantages in comparison with the others. explain
I think a franchise has the greatest advantages because for the most part, all the beginning work is done for you. the foundation is set.
what makes a nonprofit organization different than a business?
a nonprofit organization’s main goal is not to seek financial gain but to focus on the collective interest of the organization
what are the benefits of having community organizations?
they use their revenue to benefit the community
why are labor unions designed?
to represent its members’ interest in various employment matters
what are the benefits to having professional associations?
people are working to improve the working conditions, skill levels, and public perception of the profession
why is the bbb valuable?
it provides information on local companies and consumers
design your own product to sell in a industry. identify the industry, identify the product, choose the market structure, and explain why you chose that market structure
industry - sporting goods
product - fast pitch softball bat
market structure - monopolistic competition because there is a very large numbers, similar products, and freedom to enter/exit the market
what happens to labor wages when there is an increase in labor demanded
wages increase
what happens in labor wages when there is a decrease in labor supplies
wages increase
what happens to individual income when there is inflation
personal income decreases
what happens when unemployment decreases?
individual income increases because the employed people aren’t having to pay as much for he unemployed
which collective bargaining method do you prefer?
I prefer mediation because both sides come to a mutual agreement. this seems to be the most fair.
what makes a sole proprietorship the easiest form of business to start?
One person starts, owns, and runs the business.
