1. Business Ownership
Chapter 8 Section 1

2. Types of Ownership
 Do you or anyone you know own a
company?
 What kind of company is it?

3. Types of ownership
 Sole proprietorship
 Partnership
 Corporations
 Subchapter S corporations
 Limited Liability companies (LLC)
 Multinational corporations

4. Sole Proprietorship
 A type of business ownership in which
one person owns the business.
 Examples:
 Dairyhaus
 ???

5. Sole Proprietorship
 Advantages:
 You are your own boss
 Limited paperwork/regulations
 You get profits
 Disadvantages:
 Unlimited liability
 Limited capital
 Governments differ
 Global competition

6. Partnership
 A type of business in which two or
more people own the business.
 Examples:
 Law firms
 Doctors offices
 ???

7. Partnership
 Advantages:
 Partners bring different skills
 More capital
 Disadvantages:
 Breaking up is hard to do
 Partners are fully liable
 Partnerships overseas are difficult

8. Corporations
 A type of business ownership in which
many people, whom the law treats as
one person, own the business.

9. 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

10. Corporations
 Characteristics:
 Board of directors/officers
 Stockholders elect board
 Stockholders make money
 Dividends: a % of the profit
 Increase stock value

11. Corporations
 Advantages:
 Limited liability
 Business continues to exist no matter who owns
stock
 Disadvantages:
 Costly to start up
 Paperwork
 Takeover possibilities
 Double taxation

12. Subchapter S corporations
 A corporation that is taxed like a
partnership
 The business owners pay taxes from
personal earnings.
 Examples:
 restaurants

13. Limited Liability Company
 A company whose managers and
owners enjoy limited liability and some
tax benefits

14. 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

15. 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

16. 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

17. 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