Flashcards › Chapter 9 Economics

Give 4 elements involved in every business expenses, advertising, record keeping, risk What are the advantages of a proprietorship? financial advantage, lack of restrictions, personal satisfaction What are the disadvantages of a proprietorship? unlimited liability, limited size, limited life What are the advantages of a partnership? more credit, more input, better chance to grow What are the disadvantages of a partnership? unlimited liability, management problems, size limitations, ability to continue the business What are the advantages of a corporation? limited liability, indefinete life, growth, effeciency, transfer of ownership What are the disadvantages of a corporation? organizing expenses, government restriction, heavy or double taxation What two steps are involved in starting a business? gather facts of production, decide on business orginization What are the 4 factors of production? land, labor, capital, entrepenuership, technology