Introduction to Commerce

What is a sole proprietorship?

• A sole proprietorship is a business owned and operated by a single individual.

• A sole proprietorship is a type of food

• A sole proprietorship is a government agency

• A sole proprietorship is a type of shoe

Explain the concept of partnership in business.

• Partnership in business is a solo endeavor

• Partnership in business involves a legal agreement between two or more individuals to jointly own and operate a business.

• Partnership in business does not require any legal documentation

• Partnership in business involves only verbal agreements

Define a corporation and provide an example.

• Apple Inc.

• Microsoft Corp.

• Google LLC

• Amazon Ltd.

Differentiate between a service business and a merchandising business.

• Service businesses provide services, while merchandising businesses sell products.

• Service businesses manufacture goods

• Service businesses sell products

• Merchandising businesses provide services

Discuss the advantages and disadvantages of a franchise.

• Unlimited creative freedom

• Advantages: brand recognition, established business model, training and support, easier access to funding. Disadvantages: high initial investment, ongoing royalty fees, lack of full control over business decisions, potential for conflicts with the franchisor.

• Low initial investment

• Guaranteed success