Economics- Chapter 7 Notes Outline Section 1 sole proprietorship zoning law collateral 1. What are the advantages of establishing a sole proprietorship? 2. Why is a sole proprietorship the easiest type of business to establish? Section 2 general partnership limited partnership 1. How does forming a partnership solve many of the problems that are associated with sole proprietorships? 2. What are the advantages and disadvantages of organizing a partnership? Section 3 corporations board of directors stock shares dividends corporate bond 1. How is a corporation formed? What are the characteristics of a corporation? 2. How do stocks & bonds differ? Section 4 merger horizontal combinations vertical combinations conglomerate combination cooperatives 1. Why might a business owner decide to open a franchise? 2. What is the customer’s role in a cooperative? 3. How does a nonprofit organization differ from other types of business organizations?