discuss the ___________ enterprise system. free enterprise system referred to as _________________....
DESCRIPTION
Basic Economic Freedoms Freedom of _______________ Competition Risk __________TRANSCRIPT
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Discuss the ___________ enterprise system
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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.
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Basic Economic Freedoms Freedom of _______________ Competition Risk __________
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Freedom of ownership The _________________ to
_____________choose a house, car, job or business.
There are restrictions on how and where particular businesses can _________.
Ex. zoning
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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.
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Risk The potential for ___________ or failure.
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Profit The essence of the
______________________________ system.
The money earned from conducting business after all costs and expenses have been __________.
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Advantages of Entrepreneurship
Personal ________________________ to make key business decisions.
Personal fulfillment and feeling of self worth
Potential for ____________income
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Disadvantages of Entrepreneurship
Risk associated with ____________________________ of income
________ can be long and often irregular
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Sole Proprietorship A business owned and
operated by _______ person
______% of all businesses in the US are sole proprietorships
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Advantages of a Sole Proprietorship
Ease of ___________ Limited government
regulations including taxes
Profits go to the ______________
Freedom in making business decisions
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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
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Partnership
A business owned and operated by ______ or more people.
Less than ________% of all businesses in the US are partnerships
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Types of _____________________ General partnership
_________ partnership
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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
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______________ 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
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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.
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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
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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
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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
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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
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Disadvantages of Corporations Numerous_____________ restrictions Complex to start up and dissolve Taxed heavily Complex ___________________ keeping
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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
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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 _________________
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Disadvantages of Franchises Freedom to make business decisions is
limited _________________________ may be
expensive Supplies and products must be purchased
_______________from the franchisor