ECON 208 Lecture Notes - Opportunity Cost, Nonprofit Organization, Production Function

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lilacrabbit206

13 Jul 2012

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ECON 208 Full Course Notes

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May 14th, 2012- chapter 7/8 producers in the long and short run. There are 6 different types of firms: single proprietorships (no partners, no shareholders, fast decision making, full liability for that one owner, ordinary partnerships (ex. Some firms are transnational corporations (tncs), or often called multinational enterprises (mnes), like mcdonalds. This is different from an international company, which has production processes in only one country, which sells internationally, but does not have workers in multiple countries. Firms use financial capital- equity and debt. Equity will entitle whoever put the money in to ownership, but debt does not. With equity, you get a percentage of profits based on the percentage of shares you own. Equity is more risky because you"re entitled only to the profits, and if there are no profits you get nothing. If a firm acquires funds from its owners in return for stocks, shares, or equity (as they are various called).

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.

An LLC is a Limited Liability Company. It is not a corporation. However, it could be a partnership or a sole-proprietorship. What happens when one partner dies?