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11 Cards in this Set
- Front
- Back
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what are 3 reasons small businesses fail?
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lack of management skills, financing; poor business planning; failure to get and keep customers
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why do economists consider it to be an economic function of gov't to provide a legal system?
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market relies on contracts and property rights; property rights must be protected for people to make investments; contracts must be enforced.
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discuss the significance of small business in the US economy
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Cornerstone of US economy, bring new ideas, fill niche markets not served by big business, provide jobs, new products and services
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3 advantages of sole proprietorship?
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easy to make; owner control; taxed at individual rates
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3 disadvantages of sole proprietorships?
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unlimited liability; hard to get large amount of capital; short life span
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3 advantages of a partnership?
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easy to make one; same tax as proprietorships; more skills and capital available
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3 disadvantages of a partnership?
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unlimited liability; potential for interpersonal problems; difficult to dissolve
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advantages of a corporation?
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brings together money resources and talent, limited liability
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disadvantages of a corporation?
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double taxation; paperwork and costs; have to disclose financial info to gov't (competitors)
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what is a mission statement?
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what the organization is, what it does, and where it is going
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what are the components of a mission statement? (PMGPS)
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product or service; market; growth; philosophy; social responsibility
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