2. 7.00 Evaluate various forms of ownership and their impact on global business. 7.01 Compare the advantages/ disadvantages of multiple forms of business ownership. 7.02 Identify the methods of getting involved in global business.
3. Advantages of Partnership • No income tax • Easy to establish • Increased ability to rise funds • Wider pool of knowledge • Improved management
4. Disadvantages of Partnership • Partners are directly responsible for each other • Must have consent of other partner • Could potentially be unstable
5. Advantages of Sole Propietorship • Owner receives all profits • Easier to start and cheaper • Few documents are required • Owner is free to make decisions • Owner pays only personal income taxes
6. Disadvantages of Sole Propietorship • Owner is responsible for everything alone • Owner's ability to raise capital is limited • Business could end with owner's death
7. Advantages to Limited Liability Companies • profits pass through LLC • liability of members is limited • members may participate fully in management • no limit on number of members • large amount of flexibility
9. Advantages of S Corporation • Income is only taxed only at shareholder level • Shareholders are not personally liable for debts
10. Disadvantages of S Corporation • Have to file Articles of Incorporation • Less stock= lesser say in decisions
11. How to get involved in Global Business • Extend sales life of existing products • Reduce your dependence on the markets • Exploit corporate technology • Out your sales by tapping markets with different counter cyclical flucuation • Learn how to compete against foreign companies
