Types of Ownership Do you or anyone you know own a company? What kind of company is it?
Types of ownership Sole proprietorship Partnership Corporations Subchapter S corporations Limited Liability companies (LLC) Multinational corporations
Sole Proprietorship A type of business ownership in which one person owns the business. Examples: Dairyhaus ???
Sole Proprietorship Advantages: You are your own boss Limited paperwork/regulations You get profits Disadvantages: Unlimited liability Limited capital Governments differ Global competition
Partnership A type of business in which two or more people own the business. Examples: Law firms Doctors offices ???
Partnership Advantages: Partners bring different skills More capital Disadvantages: Breaking up is hard to do Partners are fully liable Partnerships overseas are difficult
Corporations A type of business ownership in which many people, whom the law treats as one person, own the business.
Corporations Closely held: private corporation in which shares are owned by a small group. Example: banks Publicly held: corporation in which shares are sold openly in stock markets. Microsoft
Corporations Characteristics: Board of directors/officers Stockholders elect board Stockholders make money Dividends: a % of the profit Increase stock value
Corporations Advantages: Limited liability Business continues to exist no matter who owns stock Disadvantages: Costly to start up Paperwork Takeover possibilities Double taxation
Subchapter S corporations A corporation that is taxed like a partnership The business owners pay taxes from personal earnings. Examples: restaurants
Limited Liability Company A company whose managers and owners enjoy limited liability and some tax benefits
Multinational Corporations An organization that operates in more than one country. MNC’s aka: global, transnational or worldwide companies or corporations Examples: McDonalds Burger King
MNC’s The original place of business for a company is the home country When the company builds operations in another country it becomes an MNC The foreign country is the host country Larger role in the world economy than simply an exporter
MNC’s continued Successful MNC’s Create universal products Design HR policies to include global workers Good guests in all countries Economic and political power
Citations Donald Baack, Ph.D., International Business. The McGraw- Hill Companies, Woodland Hills, California, 2008 Lindenmuth, Janet. Law Library Books. Digital image. Flickr. Yahoo, 12 Jan. 2012. Web. 25 June 2012. <http://www.flickr.com/photos/j3net/6685194971/>. 401K 2012. Tax. Digital image. Flickr. Yahoo, 9 Nov. 2010. Web. 25 June 2012. <http://www.flickr.com/photos/68751915@N05/6355404323/>. Microsoft Office Clip Art