MGMT 200 Chapter Notes - Chapter 26: Quality Control, Franchise Rule, Sole Proprietorship
Document Summary
Entrepreneur- one who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management. Entrepreneur must consider: ease of creation, liability of owners, tax considerations, need for capital. Sole proprietorship- simplest form of business organization, owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business. Owner has right to receive all of the profits. Sole proprietor only pays personal income taxes. Proprietor alone bears the burden of any losses or liabilities incurred. Proprietor"s opportunity to raise capital is limited to personal funds and the funds of those willing to make loans. Franchise- any arrangement in which the owner of a trademark, trade name, or copyright licences others to use the trademark, trade name, or copyright in the selling of goods or services.
