discuss the ___________ enterprise system. free enterprise system referred to as _________________....
Post on 18-Jan-2018
220 Views
Preview:
DESCRIPTION
TRANSCRIPT
Discuss the ___________ enterprise system
Free Enterprise System Referred to as _________________. Encourages individuals to start and
operate their own _____________________________ without government involvement.
Allows the _______________________to determine prices through supply and demand.
Basic Economic Freedoms Freedom of _______________ Competition Risk __________
Freedom of ownership The _________________ to
_____________choose a house, car, job or business.
There are restrictions on how and where particular businesses can _________.
Ex. zoning
Competition A ______________ between two or more
businesses to gain as much of the total _____________ share or as possible.
Helps maintain________________ prices, provides consumers with new and improved products and results in a _______________ selection of products from which to chose.
Forces businesses to ___________________ in the most efficient manner possible.
Risk The potential for ___________ or failure.
Profit The essence of the
______________________________ system.
The money earned from conducting business after all costs and expenses have been __________.
Advantages of Entrepreneurship
Personal ________________________ to make key business decisions.
Personal fulfillment and feeling of self worth
Potential for ____________income
Disadvantages of Entrepreneurship
Risk associated with ____________________________ of income
________ can be long and often irregular
Sole Proprietorship A business owned and
operated by _______ person
______% of all businesses in the US are sole proprietorships
Advantages of a Sole Proprietorship
Ease of ___________ Limited government
regulations including taxes
Profits go to the ______________
Freedom in making business decisions
Disadvantages of a Sole Proprietorship
Unlimited _____________________
Responsible for all aspects of the business including skills and _______________
Life of business is limited to the life or interest of the owner
Partnership
A business owned and operated by ______ or more people.
Less than ________% of all businesses in the US are partnerships
Types of _____________________ General partnership
_________ partnership
General Partnership An ___________________ in which both
partners agree to share equally in the profit and/or loss of the business
Each partner is _______________ for all debts incurred by the business
______________ Partnership Each partner is liable for any
debts of the business up to the amount of his/her investment
Must have at least ______________ partner who has ___________ liability
Advantages of Partnerships Relatively____________________ to start Combined financial resources and knowledge Shared management responsibilities Increased ________________ for profits Shared responsibility for risk ________________ less than a corporation A change in ownership does not alter the
continuity of the business.
Disadvantages of Partnerships Partners can disagree about business
decisions The decision or action of one partner is
_______________ binding on the other partner, including ___________
If one partner ____________, the business is dissolved
Corporation
A business owned by ____________________
A legal entity that is chartered by the state in which the business is located
_____________, directors and officers manage the daily operations
Types of Corporations _____________ (closed) -- Do not offer
shares of stock for sale to the general public
______________ (open) -- Offer shares of stock for sale to the general public
Subchapter “S” – Taxed like a sole proprietorship and limited to 35 or less shareholders
Advantages of Corporations Delegation of specific management skills Limited liability for __________________ Life of the corporation is unlimited Easier to _____________ capital Stockholders can easily enter or leave the
business by purchasing or _________________ stock
Disadvantages of Corporations Numerous_____________ restrictions Complex to start up and dissolve Taxed heavily Complex ___________________ keeping
Franchise A business or _____________________
with the right to use an established name and ________ trademarked products
Granted to a retailer or a wholesaler for a fee
Advantages of Franchises ________________liability due to name
recognition and common products Franchisor usually provides training Business plan is ____________________
by the franchisor, modified for the location and _________________
Disadvantages of Franchises Freedom to make business decisions is
limited _________________________ may be
expensive Supplies and products must be purchased
_______________from the franchisor
top related