What are the primary differences among a sole proprietorship, a partnership, and a corporation?
What will be an ideal response?
The sole proprietorship is a business operation owned and managed by an individual. Initiating this form of business
is simple and generally does not involve any substantial organizational costs. The proprietor has complete control of
the firm but must be willing to assume full responsibility for its outcomes.
The general partnership, which is simply a coming together of two or more individuals, is similar to the sole
proprietorship. The limited partnership is another form of partnership sanctioned by states to permit all but one of the
partners to have limited liability if this is agreeable to all partners.
The corporation increases the flow of capital from public investors to the business community. Although larger
organizational costs and regulations are imposed on this legal entity, the corporation is more conducive to raising large
amounts of capital. Limited liability, continuity of life, and ease of transfer in ownership, which increase the
marketability of the investment, have contributed greatly in attracting large numbers of investors to the corporate
environment. The formal control of the corporation is vested in the parties who own the greatest number of shares.
However, day-to-day operations are managed by the corporate officers, who theoretically serve on behalf of the firm's
stockholders.
You might also like to view...
If a difference is found between the physical count and the amount in the perpetual inventory records, the records must be corrected by an appropriate adjusting entry
a. True b. False Indicate whether the statement is true or false
Which of the following would a defender of globalization most likely use as an example to argue that concerns of Americanization are overblown and that globalization is indeed a two-way street?
A) the view of McDonald's being a domestic brand in China B) the growing popularity of coffee in China since the introduction of Starbucks C) the growing number of IKEA furniture stores in the United States D) the initial failure of Disneyland Paris E) the anti-globalization protests aimed at KFC
_______________________________ final offer arbitration is when the arbitrator must select one or the other party's final offer on all the disputed contract terms, like wages, health insurance, holidays, etc.
Fill in the blank(s) with the appropriate word(s).
Scenario 15.1 Use the following to answer the questions. When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario
15.1. Toyota's act of giving the opinion leaders a new vehicle for two weeks is best described as an example of A. advertising. B. personal selling. C. sales promotion. D. buzz marketing. E. push marketing.