Funeral Home Management Midterm Study Guide (FSE 2202) Questions and Answers 100% Pass
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Course
Funeral Home Management
Institution
Funeral Home Management
Funeral Home Management Midterm
Study Guide (FSE 2202) Questions and
Answers 100% Pass
What document outlines the specific rights and responsibilities of individuals involved in a
partnership?
Articles of Partnership
Explanation: This document formally details the roles, obligations, an...
1 Funeral Home Management Midterm Study Guide (FSE 2202) Questions and Answers 100 % Pass What document outlines the specific rights and responsibilities of individuals involved in a partnership? ✔✔Articles of Partnership Explanation: This document formally details the roles, obligations, and entitlements of each partner in a business arrangement. How would you describe a sole proprietorship? ✔✔An individual running a business independently and holding complete ownership. Explanation: A sole proprietorship refers to a business owned and operated by one p erson, who assumes all responsibilities and benefits. What are some benefits of forming a partnership? ✔✔- Shared management, skills, and resources - Simple to establish - Effective labor division - Opportunity for employees to invest 2 - Collective goodwill contributed by each partner Explanation: Partnerships offer collaborative advantages such as shared responsibilities, ease of formation, and the potential for employee investment. What drawbacks are associated with partnerships? ✔✔- Lack of long -term stability - Joint decision -making affects all partners - Investments may be inaccessible - Business debt may require collateral - General partners face unlimited liability - Risk of uneven profit distribution - Potential management challenges Explanation: Partnerships can face issues like continuity problems, shared liability, and complications in profit division and management. What are the benefits of a sole proprietorship? ✔✔- Simple to set up - Minimal organizational costs - All profits belong to the owner 3 - Quick decision -making - Confidentiality in business matters - Unique reputation with clients - Distinct credit history Explanation: Sole proprietorships are advantageous due to their ease of setup, low cost, complete profit retention, and personal business control. What are the limitations of a sole proprietorship? ✔✔- Unlimited financial liability - Restricted business scale - Shorter business lifespan - Limited m anagerial resources - Fewer growth opportunities for employees - Challenges in securing funds Explanation: Sole proprietorships can be limited by financial risks, business size constraints, and difficulties in raising capital and managing growth. What is a corporation? ✔✔A legal entity established by a state, which operates independently of its owners.
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