Lesson 5.2 partnerships and franchises Quizlet

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How is a franchise different from a partnership quizlet?

Owning a business franchise is similar to being in a partnership in that the franchisee has a business associated with rights and responsibilities. The franchiser, different in that a franchisee is a corporation rather than an individual, has a degree of power over franchise, does not actually participate in business.

Why are partnerships better able to raise capital than a sole proprietorship?

Raising Capital Is Easier That is because the only liability that limited partners incur is the funds they invest in the business. With this limited liability, a partnership should have an easier time raising capital than a sole proprietorship.

What are the main advantages of a partnership?

Advantages of a partnership include that:.
two heads [or more] are better than one..
your business is easy to establish and start-up costs are low..
more capital is available for the business..
you'll have greater borrowing capacity..
high-calibre employees can be made partners..

What is a partnership in economics?

A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.

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