Chapter 2 Questions

Questions Page 40 1. a) One measure of the success of a line of products is emolument. b) An entrepreneur is a person who transforms ideas for products or function into real-world occupationes. near characteristics of an entrepreneur would be: innovation and risk-taking. 2. a) The three types of a backing operation are: avail, marketing and manufacturing. A service credit line organization provides a needed service for a fee (ex. move around agencies). A merchandising care buys destroyed products and resells them to individuals or other(a) barteres (ex. Supermarkets). A manufacturing business buys raw materials, uses sedulousness and machinery to transform them into finished products to individuals or other businesses (ex. Bakeries). b) The main deflexion between a manufacturing business and a merchandising business is that a manufacturing business buys raw materials, makes a product and hence sells it when a merchandising busin ess buys the product ready and sells it. 3. a) A furbish up proprietorship is a business own by a private person. This is the simplest way to start a business and has the least regulations. A partnership is a business that is owned by devil or more people. all(a) partners share gains and losses and solely have unlimited pecuniary obligation for debts. A corporation is sort from its owner(s).

It can borrow bullion, work and be sued, own lieu and enter into contracts. b) The purpose of a partnership agreement is to cook each partners investment in money or property, responsibilities, and percent of p rofit and losses. 4. a) ???? ! b) The common disadvantage that sole traders and partnerships have is the unlimited obligation for any debts that the business may have. 5. a) The purpose of accounting formation is a crucial discipline for care track of quantitative factors for a business or individual. b) The accounting system produces learning used to make decisions. 6. a) The main difference between financial and management...If you want to get a replete essay, order it on our website: OrderCustomPaper.com

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