BUSINESS ORGANIZATIONS
SOLE PROPRIETOR   It is the     least  expensive and easiest  to create.
SOLE PROPRIETORThere isonly one owner.
SOLE PROPRIETOR   Do you need the    government’s    permission to       open the      business?
SOLE PROPRIETORMay need a licenseor permit.
SOLE PROPRIETOR   Can Joe Robertsjust open his bar under  the name of Tyler’s Sports Bar and Grill?
SOLE PROPRIETOR     Need to file  a fictitious name  registration if you    want to open a business in a nameother than yo...
Can’t use afictitious name      that is   misleading
SOLE PROPRIETORThis form has thegreatest liability   because the   debts of the business belong  to the owner.
SOLE PROPRIETORYou can reduce the risk by keeping all of your    personal assets in   joint names with a spouse and by buy...
PARTNERSHIP  When two or  more peopleoperate a business      as co-owners, they have    created a   partnership.
PARTNERSHIP How do thepartners sharein the profits and losses?
PARTNERSHIP  They will sharein the profits and   losses equally unless there is an agreement to the      contrary.
PARTNERSHIP• Agreement between two  or more people• Can be oral, written or  by implication• Partner’s are responsible  fo...
PARTNERSHIP  If Joe Robertsopens the bar withanother person and   nothing is said about the type of business entity to   b...
PARTNERSHIP A partnership    arises by   implication because thereare two owners.
PARTNERSHIPGenerally, each partner has an  equal right toparticipate in the management of  the business.
PARTNERSHIP   This right can be altered by theagreement wherebyone of the partners can have a greater         say.
PARTNERSHIP     Eachhas unlimitedliability for the  debts of the   business.
PARTNERSHIP   Whatrights does a creditor   have?
PARTNERSHIP    Creditor must     first go afterthe partnership assets and then they can go  after the partners         ass...
PARTNERSHIP   Can the creditor goafter just one partner for  the debt?
PARTNERSHIP  The debts arejoint and several. This means that the creditor can   go after one      person.
PARTNERSHIP A change in the partnersterminates the partnership.
PARTNERSHIP  Termination is a two-step    process:dissolution and   winding up.
PARTNERSHIP   A dissolutionis when a partner    ceases to be  associated with    the venture.
PARTNERSHIP A winding up  involves thecollecting of the   assets and distribution of   the assets.
LIMITED PARTNERSHIP A limited partnerships consist of one or more  general partners and   one or more limited         part...
LIMITED PARTNERSHIP     This form of business is generally used to raise revenue  since the liability of the limited     p...
LIMITED PARTNERSHIP  Must file a Certificate of Limited Partnership    with the state which certificate must state that  t...
LIMITED PARTNERSHIP The business must be  run by the general  partners without the active participation of  the limited pa...
LIMITED PARTNERSHIP    The liability of the    limited partner is      restricted to the    investment but the   general p...
LIMITED PARTNERSHIP   A limited partnership    is dissolved the same       way as a general          partnership.  However...
LIMITED LIABILTY PARTNERSHIP     Business  uses the initials      “LLP”
LIMITED LIABILTY PARTNERSHIP      This is a hybrid between a partnership and  corporation. It is used by  professionals li...
What are the    legalrequirements?
LIMITED LIABILTY PARTNERSHIP   It must be registered  with the state as an LLP  and the business must file    a certificat...
LIMITED LIABILTY PARTNERSHIP    The partners are  not personally liable   for the malpractice    claims against the     ot...
CORPORATIONIt is a separate entity created     by state     charter.
CORPORATION• Owners get stock in  the corporation• Owners liability is  usually limited to the  value of the stock.
CORPORATION  A corporation is aseparate entity so itsstatus does not changewith the death or sale     of stock by a     sh...
Think of Macy’s  Department Store. Astockholder may die but  the business goes on.
CORPORATION• Shareholders elect the  board of directors• Directors set policy and  appoint officers• Officers run business...
CORPORATION• Owners liability is usually  limited to capital     contribution• Owner can be liable if he or she  guarantee...
Can the officers of a corporation ever bepersonally liable for  the actions of the      business?
CORPORATION Officers may be    liable for the    criminal actsof the corporation.
CORPORATIONCan you say  double taxation?
CORPORATION  Business andshareholders both    pay taxes.
Is there anywayof getting arounddouble taxation?
Let me introduceyou to the world of the Subchapter S   corporation.
SUBCHAPTER SProfits and lossesgo on the personaltax returns of the stockholders and     not on the corporate return
CHAPTER TWELVE   International Law
Can you just dobusiness in another     country?
There are all sorts of hoops a company        has to jump through if they want to do business in another                co...
Exporting is a     privilegeand the company needs a license.
INTERNATIONAL LAW    Governs therelationships among     countries.
Public International Law examines relationships   among nations anduses rules, treaties and  conventions that are binding ...
TREATIES Determines rules under which world traders canconduct business activities    within each other’s        territori...
TREATY
BILATERALAgreement  betweentwo nations
MULTILATERAL   Agreement  between morethan two nations.
Private International  Law looks at the laws applicable to privateparties in their business   affairs when they   are from...
Private International Law tries to solve   these types of  problems through  trade practices.
There are      international    norms created by  commercial entitiesthat are applied by the      merchants to   their tra...
Many customs have been supplementedby the active participation   of the government      in establishing    international l...
For instance, Congress has signed a number of laws   for international trade  and treaties have been enacted that incorpor...
The Foreign SovereignImmunities Act reinforced the immunity of foreign   governments in the   U.S. courts but not    when ...
These are organizations    and business entitiesthat play a role in creating      international legal     principles and r...
Can you think of any such organizations?
Where isthe real powerin the United   Nations?
Security Council•Fifteen countries•Five permanent members•Each has veto power    over the General    Assembly
Can youname the permanent   members of   the Security     Council?
COUNTRIES•   United States•   Russia•   United Kingdom•   France•   China•   Assembly elects other 10
Let me give you a clue.  Twenty-seven nationsfrom the same geographicarea have joined togetherfor political and economic  ...
EUROPEAN UNION  TODAY, THE EU HASITS OWN LEGISLATIVE,    JUDICIAL ANDEXECUTIVE BRANCHES
Can you think of    any othercountries who have come together in   an alliance?
North American Free Trade Agreement
NAFTA  is made up ofCanada, the UnitedStates and Mexico.
These countries are   not a common union but merely  a trade alliance.
NAFTAEliminates import and export tariffs between member    countries.
ASEAN    Created tostimulate economicgrowth in Southeast       Asia.
It has created a    free trade area andhas eliminated tariffs andnon-tariff barriers among it is member countries.
WTO•Decides disputes among    member countries•Can impose sanctions    if member country    does not abide by the    rules
WTOIt establishes broad rulesfor the trade of good and  services and provides sweeping reductions in   trade barriers amon...
141 countries belongand its headquarters        are inGeneva, Switzerland.
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
Chapter 10 and 12
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Chapter 10 and 12

  1. 1. BUSINESS ORGANIZATIONS
  2. 2. SOLE PROPRIETOR It is the least expensive and easiest to create.
  3. 3. SOLE PROPRIETORThere isonly one owner.
  4. 4. SOLE PROPRIETOR Do you need the government’s permission to open the business?
  5. 5. SOLE PROPRIETORMay need a licenseor permit.
  6. 6. SOLE PROPRIETOR Can Joe Robertsjust open his bar under the name of Tyler’s Sports Bar and Grill?
  7. 7. SOLE PROPRIETOR Need to file a fictitious name registration if you want to open a business in a nameother than your own.
  8. 8. Can’t use afictitious name that is misleading
  9. 9. SOLE PROPRIETORThis form has thegreatest liability because the debts of the business belong to the owner.
  10. 10. SOLE PROPRIETORYou can reduce the risk by keeping all of your personal assets in joint names with a spouse and by buying liability insurance.
  11. 11. PARTNERSHIP When two or more peopleoperate a business as co-owners, they have created a partnership.
  12. 12. PARTNERSHIP How do thepartners sharein the profits and losses?
  13. 13. PARTNERSHIP They will sharein the profits and losses equally unless there is an agreement to the contrary.
  14. 14. PARTNERSHIP• Agreement between two or more people• Can be oral, written or by implication• Partner’s are responsible for debts• Cost is minimal• Articles of Partnership
  15. 15. PARTNERSHIP If Joe Robertsopens the bar withanother person and nothing is said about the type of business entity to be used, what happens?
  16. 16. PARTNERSHIP A partnership arises by implication because thereare two owners.
  17. 17. PARTNERSHIPGenerally, each partner has an equal right toparticipate in the management of the business.
  18. 18. PARTNERSHIP This right can be altered by theagreement wherebyone of the partners can have a greater say.
  19. 19. PARTNERSHIP Eachhas unlimitedliability for the debts of the business.
  20. 20. PARTNERSHIP Whatrights does a creditor have?
  21. 21. PARTNERSHIP Creditor must first go afterthe partnership assets and then they can go after the partners assets.
  22. 22. PARTNERSHIP Can the creditor goafter just one partner for the debt?
  23. 23. PARTNERSHIP The debts arejoint and several. This means that the creditor can go after one person.
  24. 24. PARTNERSHIP A change in the partnersterminates the partnership.
  25. 25. PARTNERSHIP Termination is a two-step process:dissolution and winding up.
  26. 26. PARTNERSHIP A dissolutionis when a partner ceases to be associated with the venture.
  27. 27. PARTNERSHIP A winding up involves thecollecting of the assets and distribution of the assets.
  28. 28. LIMITED PARTNERSHIP A limited partnerships consist of one or more general partners and one or more limited partners.
  29. 29. LIMITED PARTNERSHIP This form of business is generally used to raise revenue since the liability of the limited partners is limited to the persons’ investment as long as they have no say in the operation of the business.
  30. 30. LIMITED PARTNERSHIP Must file a Certificate of Limited Partnership with the state which certificate must state that the business is a limited partnership.
  31. 31. LIMITED PARTNERSHIP The business must be run by the general partners without the active participation of the limited partners.
  32. 32. LIMITED PARTNERSHIP The liability of the limited partner is restricted to the investment but the general partners have unlimited liability.
  33. 33. LIMITED PARTNERSHIP A limited partnership is dissolved the same way as a general partnership. However, the death of a limited partner does not dissolve the business.
  34. 34. LIMITED LIABILTY PARTNERSHIP Business uses the initials “LLP”
  35. 35. LIMITED LIABILTY PARTNERSHIP This is a hybrid between a partnership and corporation. It is used by professionals like lawyers and doctors to avoid personal liability.
  36. 36. What are the legalrequirements?
  37. 37. LIMITED LIABILTY PARTNERSHIP It must be registered with the state as an LLP and the business must file a certificate of annual registration each year.
  38. 38. LIMITED LIABILTY PARTNERSHIP The partners are not personally liable for the malpractice claims against the other partners.
  39. 39. CORPORATIONIt is a separate entity created by state charter.
  40. 40. CORPORATION• Owners get stock in the corporation• Owners liability is usually limited to the value of the stock.
  41. 41. CORPORATION A corporation is aseparate entity so itsstatus does not changewith the death or sale of stock by a shareholder.
  42. 42. Think of Macy’s Department Store. Astockholder may die but the business goes on.
  43. 43. CORPORATION• Shareholders elect the board of directors• Directors set policy and appoint officers• Officers run business ona daily basis
  44. 44. CORPORATION• Owners liability is usually limited to capital contribution• Owner can be liable if he or she guarantees corporate debt• Pierce corporate veil• Owners always liable for payroll taxes of coproation
  45. 45. Can the officers of a corporation ever bepersonally liable for the actions of the business?
  46. 46. CORPORATION Officers may be liable for the criminal actsof the corporation.
  47. 47. CORPORATIONCan you say double taxation?
  48. 48. CORPORATION Business andshareholders both pay taxes.
  49. 49. Is there anywayof getting arounddouble taxation?
  50. 50. Let me introduceyou to the world of the Subchapter S corporation.
  51. 51. SUBCHAPTER SProfits and lossesgo on the personaltax returns of the stockholders and not on the corporate return
  52. 52. CHAPTER TWELVE International Law
  53. 53. Can you just dobusiness in another country?
  54. 54. There are all sorts of hoops a company has to jump through if they want to do business in another country.
  55. 55. Exporting is a privilegeand the company needs a license.
  56. 56. INTERNATIONAL LAW Governs therelationships among countries.
  57. 57. Public International Law examines relationships among nations anduses rules, treaties and conventions that are binding on all countries
  58. 58. TREATIES Determines rules under which world traders canconduct business activities within each other’s territories.
  59. 59. TREATY
  60. 60. BILATERALAgreement betweentwo nations
  61. 61. MULTILATERAL Agreement between morethan two nations.
  62. 62. Private International Law looks at the laws applicable to privateparties in their business affairs when they are from different nations.
  63. 63. Private International Law tries to solve these types of problems through trade practices.
  64. 64. There are international norms created by commercial entitiesthat are applied by the merchants to their transactions.
  65. 65. Many customs have been supplementedby the active participation of the government in establishing international legal norms.
  66. 66. For instance, Congress has signed a number of laws for international trade and treaties have been enacted that incorporate general international legal principles into U.S. law.
  67. 67. The Foreign SovereignImmunities Act reinforced the immunity of foreign governments in the U.S. courts but not when engaged in commercial activities.
  68. 68. These are organizations and business entitiesthat play a role in creating international legal principles and rules that govern the community of nations.
  69. 69. Can you think of any such organizations?
  70. 70. Where isthe real powerin the United Nations?
  71. 71. Security Council•Fifteen countries•Five permanent members•Each has veto power over the General Assembly
  72. 72. Can youname the permanent members of the Security Council?
  73. 73. COUNTRIES• United States• Russia• United Kingdom• France• China• Assembly elects other 10
  74. 74. Let me give you a clue. Twenty-seven nationsfrom the same geographicarea have joined togetherfor political and economic purposes.
  75. 75. EUROPEAN UNION TODAY, THE EU HASITS OWN LEGISLATIVE, JUDICIAL ANDEXECUTIVE BRANCHES
  76. 76. Can you think of any othercountries who have come together in an alliance?
  77. 77. North American Free Trade Agreement
  78. 78. NAFTA is made up ofCanada, the UnitedStates and Mexico.
  79. 79. These countries are not a common union but merely a trade alliance.
  80. 80. NAFTAEliminates import and export tariffs between member countries.
  81. 81. ASEAN Created tostimulate economicgrowth in Southeast Asia.
  82. 82. It has created a free trade area andhas eliminated tariffs andnon-tariff barriers among it is member countries.
  83. 83. WTO•Decides disputes among member countries•Can impose sanctions if member country does not abide by the rules
  84. 84. WTOIt establishes broad rulesfor the trade of good and services and provides sweeping reductions in trade barriers among member nations.
  85. 85. 141 countries belongand its headquarters are inGeneva, Switzerland.

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