BUS 201 Lecture Notes - Lecture 4: Limited Liability, Sole Proprietorship, Money Supply

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Peter Tingling

Document Summary

Chapters 1-5: 90 minutes to complete, 2 sections, 30 multiple choice from textbook/lectures, 4 short answer questions (paragraph, bring student id, no phones, do(cid:374)"t bring books bags computers. Identify four key reasons for the success or failure of small businesses. Small businesses: hard to define, the basis for a lot of large companies. Sole proprietorships: unlimited liability (disadvantage, owned only by you, hard to raise money, partnerships, 2 individuals. Limited partners: not actively involved, limited liability: corporations. Private vs public (have to announce information, shares: cooperatives, an incorporated form of business organized and owned by the people who use its products and service. Love money: personal savings, private investors, venture capitalists, very few companies get help from venture capitalists, large sum of money. Innovation: something new and useful often arising from outside the established industry. Strategic mistakes: rejecting opportunities that appear small, too many minor product extensions, better to have a few big ideas.