Econ chapter 7 Word Scramble
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| Question | Answer |
| Most significant decisions an entrepreneur makes when starting a business | Which type of business ownership will they have? |
| Sole proprietorship | A business firm that has one owner. |
| What are the advantages of a sole proprietorship? | Freedom to enter and exit the market easily; freedom from outside control; Freedom to retain information; Freedom from paying excessive taxes; freedom from being an employee. |
| What are the disadvantages of sole proprietorships? | Unlimited personal financial liability; limited management and employee skills;limited life; limited availability of money |
| Partnership; general partnership | A business enterprise with two or more persons as the owners. |
| What are the advantages of partnerships? | Greater management skills; greater retention of competent employees; greater sources of financing; Ease of formation and freedom to manage. |
| What are the disadvantages of partnerships? | Unlimited personal financial liability; uncertain life; conflicts between partners |
| Corporation | Is created by incorporating a business, legally declaring that the business is its own organization, independent of and seperate from the owners. |
| What are the advantages of corrporations? | Limited personal financial liability of stockholders; experienced management and specialized employees; continuous life; ease in raising financial capital. |
| What are the disadvantages of corporations? | Higher taxes; greater governmental regulation; lack of secrecy; impersonality. |
| James Cash Penney | Followed his own penny principles in order to be a successful entrepreneurs. |
| Surety | the act of becoming security for or pledging to undertake another's debt |
| Corporate organizational structure: | stockholders; board of directors; president (CEO); senior vice presidents; middle managers; line managers (foremen); employees |
| What does 2 Corinthians 6:14 have to do with economics? | It describes how a partnership business will not work out if the people involved in the partnership business do not have the same worldviews. |
| What is a Limited liability company (LLC)? | A form of business organization that combines the benefits of a corporation with those of a partnership. |
| Subchapter S corporation | A business that may incorporate as this if it has fewer than thirty five shareholders and abides but certain restrictions regarding types of stock. |
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