Section 8 Study Questions (9.0 points)
Answer each question fully. Complete sentences are not necessary.
Lesson 1 (3.0 points)
1. What is the Exit stage of a business? (0.5 points)
The exit stage of a business is when a business owner gets out of their day to day commitment to running a company.
2. What does the human resources department of a company do? (0.5 points)
The human resources of a company handles things like employee hiring, firing, insurance, and retirement benefits, payroll, and employee complaints.
3. What is information utility? (0.5 points)
Information utility is the value added to a product by providing the consumer with useful information.
4. List the six stages of a business. (1.5 points)
The six stages business are identity, plan, start, operate, improve, and exit.
Lesson 2 (3.0 points)
1. What is pass-through taxation? (0.5 points)
Pass through taxation is taxes on the companies income which are paid on personal tax forms of the companies owner.
2. What is an advantage of a sole proprietorship? (0.5 points)
The advantage of sole proprietorship is it is easy to set up, tax benefits,and all profits belong to the owner.
3. What is an S corporation? (0.5 points)
An S cooperation is a cooperation with special tax status.
4. What is franchising? (0.5 points)
Franchising is a way of turning a company into a parent company with smaller retail outlets owned by independent operators.
5. What can happen to a business owner who has personal liability for their company? (0.5 points)
A business owner who has personal liability for their company can have their personal assets taken away to pay any company debts and if the company is sued for any reason, the owner of the company is automatically being sued personally.
6. What is an entity? (0.5 points)
Entity is a being, such as a person or company.
Lesson 3 (3.0 points)
1. Why does doing...
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