This document summarizes various forms of business organization including proprietorships, partnerships, corporations, franchises, and non-profits. Proprietorships are owned by one person while partnerships are owned by two or more people who share profits and debts. Corporations provide liability protection and are owned by shareholders who elect a board of directors. Franchises grant permission to operate a business using another company's brand and operating model. Non-profits are formed to benefit the public through activities like fundraising and donations.

1. Chapter 5
Business Organization

2. Forms of Business Ownership
• Proprietorship
• Partnership
– Limited Liability
Partnership
– Joint Venture
• Franchise
• Corporation
– S-corporation
– Limited Liability Company
– Non-profit Corporation

3. Proprietorship
• A business owned and
run by just one person.
• Easiest to start
• Few legal requirements

4. Partnership
• A business owned and controlled by two or
more people who have entered into a
written agreement.
• Easy to start
• Share investments and profits
• Share debt and business failure

5. Limited Liability Partnership
• A partnership where an
investor cannot lose more
than they have invested
• No allowed to participate in
day-to-day management
• Difficult and costly

6. Joint Venture
• A unique business organized by two or more
other businesses to operate for a limited time
for a specific project

7. Corporation
• A separate entity formed by documents filed
with the state.
• Owned by one or more share holders
• Managed by a board of directors
• Owners invest in the business by purchasing
shares of stock
• Most legal requirements

8. Corporation

9. S-corporation
• Offers limited liability of a corporation
• All investment is passed through owners based
on their investment

10. Limited Liability Company
• Liability protection for owners
• Simpler set of organizing and operating
requirements than a corporation

11. Non-Profit Corporation
• A group of people that join to do some activity
that benefits the public.
• Raising funds, take donations, etc.
• Government approval

12. Franchise
• A written contract granting
permission to operate a
business to sell products
and services in a set way.
• Company grants rights to a
franchisee

13. Examples

14. Jimmy John’s

15. Tippitoesdance.com