ECON 208 Lecture : Notes 2.docx

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salmonwalrus757

30 Apr 2012

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ECON 208 Full Course Notes

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Chapter 7 producers in the short run10/19/2011 1:43:00 pm. Single proprietorship has one owner manager who is personally responsible for all aspects of the business including its debt. Ordinary partnership has 2+ joint owners each of whom is personally responsible for all partnerships debts. Limited partnership take no part in running of business and liability is limited to amount they invest: less common. Corporation firm regarded in law as having an identity of its own. Owners are not personally responsible for anything done in firms name. State owned enterprise owned by gov but usually under direction of a more or less independent state appointed board. Non profit organization provide goods or services to customers but having any profits that are generated remain with org and not claimed by individs. Equity funds provided by owners of the firm. Debt funds borrowed from creditors outside firm. 2 assumptions: firms want to maximize profit.

Related Questions

Match Column A with Column B

1) Partnership	a) a business owned by one person who is personally liable for all losses
2) Proprietorship	b) An artificial being created by a state
3) Limited partnership	c) two or more persons combine their efforts for a single transaction
4) Corporation	d) created when shareholders elect to be treates as partners for tax purposes
5) legal capacity	e) created by an agreement between two or more persons who agree to share profits and losses
6) buy-and-sell agreement	f) provides for compensation to a deceased or withdrawing owner of a business in return for that owners interest.
7) Subchapter S corporation	g) the ability of an organization to sue or to own property
8) joint venture	h) exists when some partners are treated like shareholders for liability purposes
9) limited liability company	i) tax doctine that allows income to be taxed at the owner level, not the organization level
10) "pass through"	j) owners recieve limited liability and tax treatment as if they were a partnership without filing as a corporation.