案例商业组织.pdfVIP

Comprehension Questions ▪Para One ▪What does the form of organization mean? ▪ The type of ownership. ▪What are the three different forms being discussed in the article? ➢Sole proprietorship ➢Partnership ➢Corporation ▪What are the major differences among various kinds of forms? ➢the ability to raise capital ➢the size ➢continuity of the enterprise ➢the disposition of profits ➢the legal obligations in the event of bankruptcy Para 2 3 About sole Proprietorship ▪ What is a sole proprietorship ? What are the advantages and disadvantages of a sole proprietorship ? ▪ Advantages: ➢own all the assets of the business ➢enjoy the to make a decision ➢enjoy the right to keep all the profits ➢pay tax once ▪ Disadvantages: ➢limited ability to borrow money ➢take all the responsibility for orrect choices ➢owe all the debts when suffering a loss ➢unlimited financial liability in the event of bankruptcy Para 4-5 About Partnership ▪ What is a partnership like? ▪ What are the two important items covered in the legal agreement? What is the agreement called? ▪ What are the similarities between a Sole Proprietorship and a Partnership? ➢Own all the assets ➢Owe all the debts ➢Make the decisions ly ➢Share the profits ➢Pay only al e taxes ➢ unlimited financial liability in the event of ➢ bankruptcy ▪ What are the advantages a Partnership has over a Sole Proprietorship ? ➢Stronger managerial ability ➢More capital Para 6 7 ▪ What is a corporation? ▪ What are the usual means for a corporation to raise money? ➢through the sale of stocks ▪ What are the differences between a corporation and the other two forms? ➢ limited financial liability in the event of bankruptcy ➢ pay tax twice ➢ easily transferred ownership ▪ What are the merits and deme