forms of ownership


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  • Describe how a limited liability partnership would allow you to begin a partnership with a noted expert who is only liable for the amount they invested in the company. Explain how a joint venture ends when a project is completed. Ask students to give examples of franchises. Fast food restaurants, hotels, and other businesses operate as franchises.
  • forms of ownership

    1. 1. By Sweetness Nkosi University of Johannesburg
    2. 2. Service Business Carry out activities that are consumed by its customers Intermediaries Sell goods and services Producers Create products and services used by other individuals and businesses
    3. 3. BUSINESS ORGANIZATIONS: THE PRIVATE SECTOR Sole traders Partnerships Private limited companies Public limited companies Co-operatives Close corporations franchise
    4. 4. Choice of Suitable form of ownership – A Crucial Decision The form of ownership determines the - Division of Profits Extent of liability Extent of Risk Division of Power Control of Owner Long term commitment, cannot be altered easily FORMS OF OWNERSHIP DETERMINES…
    5. 5.  Ease of Formation  Sufficient Finances  Limited Liability  Transferability of Interest  Efficient Management IDEAL FORM OF OWNERSHIP
    6. 6. SOLE PROPRIETORSHIP A business owned and managed by one individual; the business and the owner are one and the same in the eyes of the law
    7. 7. Owned by 2 or more persons Least numerous business organization Smallest proportion of sales and net income PARTNERSHIPS
    8. 8. CORPORATIONS Corporations account for 1/5 of all firms in the U.S. and 90% of all sales A corporation is a form of business organization recognized by law as a separate legal entity having all the rights of an individual
    9. 9. Limited Liability Partnership & Company Joint Venture S- Corporation Nonprofit Corporation Franchise Cooperative Other Forms of Business Ownership UNT in partnership with TEA, Copyright ©. All rights reserved 8
    10. 10. What is Franchise? A franchise is a business established by one person who buys copyrights of another firm and is allowed to produce and distribute that product. FRANCHISING
    11. 11.  Nature of Business  Size and Area of Operations  Degree of Control Desired  Amount of Capital Required  Degree of Risk Involves FACTORS TO CHOICE OF OWNERSHIP
    12. 12. organisation 27056960 organisation-pp REFERENCES