Forms of Business
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This document compares and contrasts three main forms of business ownership: sole proprietorships, partnerships, and corporations. It outlines the key advantages and disadvantages of each. Sole proprietorships are easy to start but owners have unlimited liability. Partnerships allow for shared management but disagreements can occur. Corporations offer liability protection but have higher start-up costs and ongoing regulations. The document also briefly discusses alternatives like buying an existing business, entering a family business, or purchasing a franchise.
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6a. types of business ownership
The document discusses different types of business ownership structures including sole proprietorships, partnerships, corporations, cooperatives, and franchises. Sole proprietorships are owned and operated by one person who assumes all risks and responsibilities. Partnerships involve two or more co-owners who share profits, losses, and responsibilities. Corporations are legal entities where shareholders have limited liability and can more easily obtain funding. Cooperatives are owned and democratically controlled by their members. Franchises allow franchisees to use an existing business's name and systems.
Forms of Business Organization
The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. A sole proprietorship is owned by one individual who receives all profits but is fully liable for any debts or losses. A partnership has two or more owners who share profits but are also jointly and individually liable. A corporation provides liability protection as it is a separate legal entity from its owners, but it also faces more regulation and potential double taxation. The optimal structure depends on factors like a business's size, control needs, liability risks, and tax implications.
Forms of Ownership
This document discusses various forms of business ownership including sole proprietorships, partnerships, corporations, and additional special forms. It defines each form and provides their key advantages and disadvantages. Main forms discussed include sole proprietorships owned by one person, partnerships as a voluntary association of two or more individuals, and corporations as an artificial entity created by law that can raise capital through selling stock. Additional special forms covered are S-corporations that are taxed as partnerships, limited liability companies that combine benefits of corporations and partnerships, and not-for-profit corporations organized to provide services rather than earn profits. Cooperatives, joint ventures, and syndicates are also briefly outlined as additional less common forms of business ownership.
Types of business ownership
This document discusses three types of business ownership: sole proprietorships, partnerships, and corporations. Sole proprietorships are inexpensive to start but sole owners are liable for all business debts. Partnerships allow for more ideas but partners may disagree, and the business can fail if a partner dies. Corporations make more money but are difficult to start and expensive to form. The document concludes that sole proprietorships have the most advantages, while partnerships have the most disadvantages, and partnerships may be best for starting an ice skating business due to the ability to generate many ideas.
Business Ownership
This document provides information about different types of business ownership, including privately owned sole traders and partnerships, privately limited and publicly limited companies, franchises, and cooperatives. It defines each type of ownership and provides examples. Students are asked to complete starter activities to assess their existing knowledge, and a jigsaw activity where they research and write about different types of ownership in groups. The document concludes with discussion questions and assignments for a plenary discussion and homework.
types of ownerships
This document discusses different forms of business ownership, including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one person and are easy to start but provide unlimited liability. Partnerships involve two or more owners who share decision-making and profits but may disagree. Corporations are chartered by states, provide limited liability to owners, and have separate legal status from owners but more complex tax structures. The document provides advantages and disadvantages of each form of ownership.
Types of business ownership
The document discusses different types of business ownership in the UK, including sole traders, partnerships, private limited companies, public limited companies, franchises, and public sector organizations. A sole trader owns and runs the business individually, while a partnership involves 2-20 owners sharing decision-making and profits. Private and public limited companies have shareholders and are separate legal entities from their owners. Franchises allow one business to use another's name and support. The public sector involves organizations controlled by the government to provide public services.
3.3 Types of Business Ownership 1
This document outlines three basic types of business ownership - sole proprietorships, partnerships, and corporations. It describes the key characteristics of each type including advantages and disadvantages. For sole proprietorships, it notes they are the most common but offer unlimited liability. Partnerships allow for shared decision-making but may lead to disagreements. Corporations offer limited liability but have higher start-up costs and regulations. The document also briefly discusses other options like buying an existing business, franchises, or family businesses.
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6a. types of business ownership
The document discusses different types of business ownership structures including sole proprietorships, partnerships, corporations, cooperatives, and franchises. Sole proprietorships are owned and operated by one person who assumes all risks and responsibilities. Partnerships involve two or more co-owners who share profits, losses, and responsibilities. Corporations are legal entities where shareholders have limited liability and can more easily obtain funding. Cooperatives are owned and democratically controlled by their members. Franchises allow franchisees to use an existing business's name and systems.
Forms of Business Organization
The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. A sole proprietorship is owned by one individual who receives all profits but is fully liable for any debts or losses. A partnership has two or more owners who share profits but are also jointly and individually liable. A corporation provides liability protection as it is a separate legal entity from its owners, but it also faces more regulation and potential double taxation. The optimal structure depends on factors like a business's size, control needs, liability risks, and tax implications.
Forms of Ownership
This document discusses various forms of business ownership including sole proprietorships, partnerships, corporations, and additional special forms. It defines each form and provides their key advantages and disadvantages. Main forms discussed include sole proprietorships owned by one person, partnerships as a voluntary association of two or more individuals, and corporations as an artificial entity created by law that can raise capital through selling stock. Additional special forms covered are S-corporations that are taxed as partnerships, limited liability companies that combine benefits of corporations and partnerships, and not-for-profit corporations organized to provide services rather than earn profits. Cooperatives, joint ventures, and syndicates are also briefly outlined as additional less common forms of business ownership.
Types of business ownership
This document discusses three types of business ownership: sole proprietorships, partnerships, and corporations. Sole proprietorships are inexpensive to start but sole owners are liable for all business debts. Partnerships allow for more ideas but partners may disagree, and the business can fail if a partner dies. Corporations make more money but are difficult to start and expensive to form. The document concludes that sole proprietorships have the most advantages, while partnerships have the most disadvantages, and partnerships may be best for starting an ice skating business due to the ability to generate many ideas.
Business Ownership
This document provides information about different types of business ownership, including privately owned sole traders and partnerships, privately limited and publicly limited companies, franchises, and cooperatives. It defines each type of ownership and provides examples. Students are asked to complete starter activities to assess their existing knowledge, and a jigsaw activity where they research and write about different types of ownership in groups. The document concludes with discussion questions and assignments for a plenary discussion and homework.
types of ownerships
This document discusses different forms of business ownership, including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one person and are easy to start but provide unlimited liability. Partnerships involve two or more owners who share decision-making and profits but may disagree. Corporations are chartered by states, provide limited liability to owners, and have separate legal status from owners but more complex tax structures. The document provides advantages and disadvantages of each form of ownership.
Types of business ownership
The document discusses different types of business ownership in the UK, including sole traders, partnerships, private limited companies, public limited companies, franchises, and public sector organizations. A sole trader owns and runs the business individually, while a partnership involves 2-20 owners sharing decision-making and profits. Private and public limited companies have shareholders and are separate legal entities from their owners. Franchises allow one business to use another's name and support. The public sector involves organizations controlled by the government to provide public services.
3.3 Types of Business Ownership 1
This document outlines three basic types of business ownership - sole proprietorships, partnerships, and corporations. It describes the key characteristics of each type including advantages and disadvantages. For sole proprietorships, it notes they are the most common but offer unlimited liability. Partnerships allow for shared decision-making but may lead to disagreements. Corporations offer limited liability but have higher start-up costs and regulations. The document also briefly discusses other options like buying an existing business, franchises, or family businesses.
Lesson 7
A sole proprietorship is a business owned and operated by one individual where they retain all profits but are personally responsible for any debts. A partnership is between 2-20 people who jointly own and operate the business, with profits distributed based on ownership percentage but unlimited liability like a sole proprietorship. A private company limits liability and has more complex structures than a sole proprietorship or partnership.
Types of business ownership alexis
The document discusses the different types of business organizations: sole proprietorships, partnerships, and corporations. It lists the advantages and disadvantages of each type. Sole proprietorships are easy to start but the owner is responsible for all debts and losses. Partnerships allow for sharing of ideas and responsibilities but can involve disagreements. Corporations have the most advantages listed, including limited liability, but are also the most difficult and expensive to start. The document concludes that corporations would be best for an entrepreneur looking to select the type of business with the most advantages. It also suggests that a sole proprietorship may be best for someone opening a small, local ice skating rink due to challenges raising money and potential for expansion.
Business Organizations
There are three main types of business organizations: sole proprietorships, partnerships, and corporations. Sole proprietorships are the most common but provide unlimited liability for the owner. Partnerships make it easier to raise capital than sole proprietorships but partners are responsible for each other's actions. Corporations provide limited liability for shareholders but are more expensive to form and are subject to more government regulations.
PATTERNS OF BUSINESS OWNERSHIP
Sole proprietorships are owned and managed by one person and are the most common business ownership form. Partnerships involve two or more people and generate the least profits of all basic ownership types. Corporations are legal entities with authority and liability separate from owners, unlike sole proprietorships and partnerships.
FORMS OF OWNERSHIP
This document discusses different forms of business ownership including sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the key characteristics of each form such as division of profits, extent of liability, control, and taxation. The document also discusses factors to consider when choosing a form of ownership like the nature of the business, capital requirements, risk, and desire for control. Overall it serves as an introduction to the different forms of business and helps guide decisions around selecting an appropriate structure.
Formsofownership 170828145641
The document discusses different forms of business ownership including sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the key characteristics of each form such as division of profits, extent of liability, control, and tax implications. The ideal form of ownership depends on factors like the nature of the business, capital requirements, risk level, and government regulations. The government also provides various measures like financial assistance and industrial parks to support small businesses in India.
Chapter 35: Forms of Business Organization
This document discusses different forms of business organization including sole proprietorships, franchises, partnerships, corporations, and limited liability companies. It provides information on the advantages and disadvantages of each form as well as case studies discussing issues related to each type of business structure. The goal is to help readers understand the key factors involved in selecting the most appropriate legal form for a business.
Legal forms of business ownership om
This document provides an overview of different forms of business ownership, including sole proprietorships, partnerships, and corporations. It describes the key characteristics of each form: sole proprietorships are owned by one individual and have unlimited liability but are easy to form; partnerships are owned by two or more individuals who share profits and liability; corporations are legally separate entities that can sell stock to raise capital but are more heavily regulated. The document also lists some advantages and disadvantages of each ownership structure and examines special types of business entities like S-corporations and LLCs.
Forms of ownership
The document discusses various forms of business ownership including sole trader, partnership, private company, and public company. A sole trader is owned and managed by one individual, while a partnership involves two to twenty partners who share profits and losses. A private company has shareholders with limited liability, and a public company may offer shares to the public. When choosing a form of ownership, business owners should consider factors like liability, ease of formation, ability to raise funds, and tax implications.
Ownership and Organization
This document outlines different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. It discusses the key advantages and disadvantages of each organizational structure and legal registration requirements. The types of partnerships, corporation advantages like limited liability, and cooperative principles are defined. The document provides an overview of important considerations for selecting the optimal organizational vehicle for a business.
2 BFUG Conference - Business Entity Selection
This document discusses different legal structures for businesses including corporations, LLCs, cooperatives, L3Cs, and nonprofits. It provides an overview of key aspects of each structure such as ownership, control, liability, taxation, and formation process. The document aims to help readers determine which legal structure is most appropriate for their specific business needs and goals.
Business Structures
The document discusses different business organization structures including sole proprietorships, general partnerships, limited liability companies, C corporations, and S corporations. It provides examples of different types of businesses that may choose each structure and highlights key considerations like costs, taxes, and legal liability for business owners.
Forms Of Business Organisation Pp
The document discusses different forms of business organization. Sole traders are owned and operated by one person but have limited liability. Partnerships involve two to twenty people who contribute capital and share profits based on a partnership agreement. Private limited companies are separate legal entities from owners, who buy shares and appoint directors to run the company. Public limited companies have shares traded on a stock exchange. Co-operatives have members who work together and share profits equally. Franchising involves a franchisor licensing their business concept to franchisees. Public corporations are wholly government-owned businesses.
Shared services for collaborative working
This document summarizes key considerations for collaborative working agreements and trading subsidiaries between charities. It outlines the legal structures available, including contractual collaboration and forming a new legal entity. When collaborating, charities should understand objectives, culture, and limitations. Choosing the right partners requires addressing politics, policies, and exit strategies. Contractual agreements must define responsibilities, timelines, governance, cost/liability sharing, and dispute resolution. Trading subsidiaries can ring-fence risk but require agreements on activities, asset use, record keeping, profit distribution, and termination.
Organizational Types for Small Businesses with Evelyn Ritchie
In this session, you will learn the pros and cons of different business structures. Participants will become familiar with the common types of business formations and what structure will work best for their business.
Forms of business ownership
This document discusses different forms of business ownership including sole proprietorships, partnerships, cooperatives, and corporations. Sole proprietorships are owned and controlled by one individual who receives all profits and bears all losses. Partnerships involve two or more owners who have unlimited liability for partnership debts. Cooperatives are businesses owned and operated by a group of individuals for mutual benefit. Corporations are distinct legal entities that can be privately or publicly held, with shareholders having limited liability based on their investment.
Sole proprietorship
This document discusses sole proprietorships and partnerships as forms of business organization. It defines a sole proprietorship as a business owned and managed by one person, noting they account for over 70% of US businesses but only 5% of sales. Key advantages are easy start-up, few regulations, and full control and profits for the owner. Disadvantages include limited funds, reliance on the owner, and the owner's unlimited liability. Partnerships are defined as businesses co-owned by two or more individuals who agree on responsibilities, profits, and losses. General partnerships provide joint management but unlimited liability, while limited partnerships and limited liability partnerships (LLPs) limit individual partners' liability. Advantages include resources, decision-making
Forms of ownership
This document discusses different forms of business ownership, including sole traders and partnerships. Sole traders have one owner who is solely responsible for management but also bears unlimited liability. Partnerships involve two or more owners who combine capital, skills, and abilities, allowing for greater financial strength but also joint liability. Key advantages of partnerships include easier access to capital and a wider range of expertise, while disadvantages include potential conflicts between partners and difficulty making urgent decisions. The document also outlines what is typically included in a partnership agreement.
Private Business Ownership
There are several forms of business ownership. A sole proprietorship is the most common form, with one owner who is responsible for all aspects of the business. Partnerships allow for shared responsibilities but also shared liability. Corporations provide limited liability for owners but are subject to double taxation. S Corporations and LLCs were created to avoid double taxation, with profits passed through to owners. Family businesses must consider succession and other family dynamics. Non-profits make up over 1.5 million organizations in the US and are exempt from taxes but have strict regulations.
Presentation on Forms of Business Organisation
This presentation focuses on different forms of Business Organisation both incorporated and non-incorporated. Helpful for Freshers.
Tabaco en la adolescencia
El documento presenta datos sobre la edad a la que los fumadores empezaron a fumar. Muestra que el 72% de los encuestados son fumadores, mientras que el 16% no fuman y el 8% prefirió no contestar. La moda de la edad a la que empezaron a fumar es de 15-16 años. Calcula también la media, mediana y cuartiles de las edades.
Meiosis
La meiosis es un proceso de división celular que reduce el número de cromosomas a la mitad y produce células haploides como gametos para la reproducción sexual. Consta de dos divisiones celulares sucesivas: la primera produce dos células hijas haploides y la segunda otra vez dos, resultando en cuatro células haploides con la mitad de cromosomas que la célula madre diploide original. Este proceso evita que el número de cromosomas se duplique con cada generación.
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Lesson 7
A sole proprietorship is a business owned and operated by one individual where they retain all profits but are personally responsible for any debts. A partnership is between 2-20 people who jointly own and operate the business, with profits distributed based on ownership percentage but unlimited liability like a sole proprietorship. A private company limits liability and has more complex structures than a sole proprietorship or partnership.
Types of business ownership alexis
The document discusses the different types of business organizations: sole proprietorships, partnerships, and corporations. It lists the advantages and disadvantages of each type. Sole proprietorships are easy to start but the owner is responsible for all debts and losses. Partnerships allow for sharing of ideas and responsibilities but can involve disagreements. Corporations have the most advantages listed, including limited liability, but are also the most difficult and expensive to start. The document concludes that corporations would be best for an entrepreneur looking to select the type of business with the most advantages. It also suggests that a sole proprietorship may be best for someone opening a small, local ice skating rink due to challenges raising money and potential for expansion.
Business Organizations
There are three main types of business organizations: sole proprietorships, partnerships, and corporations. Sole proprietorships are the most common but provide unlimited liability for the owner. Partnerships make it easier to raise capital than sole proprietorships but partners are responsible for each other's actions. Corporations provide limited liability for shareholders but are more expensive to form and are subject to more government regulations.
PATTERNS OF BUSINESS OWNERSHIP
Sole proprietorships are owned and managed by one person and are the most common business ownership form. Partnerships involve two or more people and generate the least profits of all basic ownership types. Corporations are legal entities with authority and liability separate from owners, unlike sole proprietorships and partnerships.
FORMS OF OWNERSHIP
This document discusses different forms of business ownership including sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the key characteristics of each form such as division of profits, extent of liability, control, and taxation. The document also discusses factors to consider when choosing a form of ownership like the nature of the business, capital requirements, risk, and desire for control. Overall it serves as an introduction to the different forms of business and helps guide decisions around selecting an appropriate structure.
Formsofownership 170828145641
The document discusses different forms of business ownership including sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the key characteristics of each form such as division of profits, extent of liability, control, and tax implications. The ideal form of ownership depends on factors like the nature of the business, capital requirements, risk level, and government regulations. The government also provides various measures like financial assistance and industrial parks to support small businesses in India.
Chapter 35: Forms of Business Organization
This document discusses different forms of business organization including sole proprietorships, franchises, partnerships, corporations, and limited liability companies. It provides information on the advantages and disadvantages of each form as well as case studies discussing issues related to each type of business structure. The goal is to help readers understand the key factors involved in selecting the most appropriate legal form for a business.
Legal forms of business ownership om
This document provides an overview of different forms of business ownership, including sole proprietorships, partnerships, and corporations. It describes the key characteristics of each form: sole proprietorships are owned by one individual and have unlimited liability but are easy to form; partnerships are owned by two or more individuals who share profits and liability; corporations are legally separate entities that can sell stock to raise capital but are more heavily regulated. The document also lists some advantages and disadvantages of each ownership structure and examines special types of business entities like S-corporations and LLCs.
Forms of ownership
The document discusses various forms of business ownership including sole trader, partnership, private company, and public company. A sole trader is owned and managed by one individual, while a partnership involves two to twenty partners who share profits and losses. A private company has shareholders with limited liability, and a public company may offer shares to the public. When choosing a form of ownership, business owners should consider factors like liability, ease of formation, ability to raise funds, and tax implications.
Ownership and Organization
This document outlines different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. It discusses the key advantages and disadvantages of each organizational structure and legal registration requirements. The types of partnerships, corporation advantages like limited liability, and cooperative principles are defined. The document provides an overview of important considerations for selecting the optimal organizational vehicle for a business.
2 BFUG Conference - Business Entity Selection
This document discusses different legal structures for businesses including corporations, LLCs, cooperatives, L3Cs, and nonprofits. It provides an overview of key aspects of each structure such as ownership, control, liability, taxation, and formation process. The document aims to help readers determine which legal structure is most appropriate for their specific business needs and goals.
Business Structures
The document discusses different business organization structures including sole proprietorships, general partnerships, limited liability companies, C corporations, and S corporations. It provides examples of different types of businesses that may choose each structure and highlights key considerations like costs, taxes, and legal liability for business owners.
Forms Of Business Organisation Pp
The document discusses different forms of business organization. Sole traders are owned and operated by one person but have limited liability. Partnerships involve two to twenty people who contribute capital and share profits based on a partnership agreement. Private limited companies are separate legal entities from owners, who buy shares and appoint directors to run the company. Public limited companies have shares traded on a stock exchange. Co-operatives have members who work together and share profits equally. Franchising involves a franchisor licensing their business concept to franchisees. Public corporations are wholly government-owned businesses.
Shared services for collaborative working
This document summarizes key considerations for collaborative working agreements and trading subsidiaries between charities. It outlines the legal structures available, including contractual collaboration and forming a new legal entity. When collaborating, charities should understand objectives, culture, and limitations. Choosing the right partners requires addressing politics, policies, and exit strategies. Contractual agreements must define responsibilities, timelines, governance, cost/liability sharing, and dispute resolution. Trading subsidiaries can ring-fence risk but require agreements on activities, asset use, record keeping, profit distribution, and termination.
Organizational Types for Small Businesses with Evelyn Ritchie
In this session, you will learn the pros and cons of different business structures. Participants will become familiar with the common types of business formations and what structure will work best for their business.
Forms of business ownership
This document discusses different forms of business ownership including sole proprietorships, partnerships, cooperatives, and corporations. Sole proprietorships are owned and controlled by one individual who receives all profits and bears all losses. Partnerships involve two or more owners who have unlimited liability for partnership debts. Cooperatives are businesses owned and operated by a group of individuals for mutual benefit. Corporations are distinct legal entities that can be privately or publicly held, with shareholders having limited liability based on their investment.
Sole proprietorship
This document discusses sole proprietorships and partnerships as forms of business organization. It defines a sole proprietorship as a business owned and managed by one person, noting they account for over 70% of US businesses but only 5% of sales. Key advantages are easy start-up, few regulations, and full control and profits for the owner. Disadvantages include limited funds, reliance on the owner, and the owner's unlimited liability. Partnerships are defined as businesses co-owned by two or more individuals who agree on responsibilities, profits, and losses. General partnerships provide joint management but unlimited liability, while limited partnerships and limited liability partnerships (LLPs) limit individual partners' liability. Advantages include resources, decision-making
Forms of ownership
This document discusses different forms of business ownership, including sole traders and partnerships. Sole traders have one owner who is solely responsible for management but also bears unlimited liability. Partnerships involve two or more owners who combine capital, skills, and abilities, allowing for greater financial strength but also joint liability. Key advantages of partnerships include easier access to capital and a wider range of expertise, while disadvantages include potential conflicts between partners and difficulty making urgent decisions. The document also outlines what is typically included in a partnership agreement.
Private Business Ownership
There are several forms of business ownership. A sole proprietorship is the most common form, with one owner who is responsible for all aspects of the business. Partnerships allow for shared responsibilities but also shared liability. Corporations provide limited liability for owners but are subject to double taxation. S Corporations and LLCs were created to avoid double taxation, with profits passed through to owners. Family businesses must consider succession and other family dynamics. Non-profits make up over 1.5 million organizations in the US and are exempt from taxes but have strict regulations.
Presentation on Forms of Business Organisation
This presentation focuses on different forms of Business Organisation both incorporated and non-incorporated. Helpful for Freshers.
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Organizational Types for Small Businesses with Evelyn Ritchie
Organizational Types for Small Businesses with Evelyn Ritchie
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La meiosis es un proceso de división celular que reduce el número de cromosomas a la mitad y produce células haploides como gametos para la reproducción sexual. Consta de dos divisiones celulares sucesivas: la primera produce dos células hijas haploides y la segunda otra vez dos, resultando en cuatro células haploides con la mitad de cromosomas que la célula madre diploide original. Este proceso evita que el número de cromosomas se duplique con cada generación.
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- 2. Three basic forms of business ownership •Sole proprietorship •Partnership •Corporation
- 3. Sole proprietorship •A business owned and operated by one
- 4. Advantages of sole proprietorships •Easy and inexpensive to create. •Owner makes all business decisions. •Owner receives all profits. •Least regulated form of business ownership. •Business itself pays no taxes.
- 5. Disadvantages of sole proprietorships •Owner has unlimited liability for all debts and actions of the business. Unlimited liability: The debts of the business may be paid from the personal
- 6. Partnership A form of business ownership in which two or more people share the assets, liabilities, and profits.
- 7. Types of Partnerships •General partnership: A partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business. •Limited partnership: A partnership in which the
- 8. Advantages of partnerships •Shared decision making and management responsibilities. •Easier to raise capital than in a sole proprietorship. •Few government regulations.
- 9. Disadvantages of partnerships •Partnerships may lead to disagreements. •Some entrepreneurs are not willing to share responsibilities and profits. •Some entrepreneurs fear being held legally
- 10. Corporation A business that is chartered by a state and legally operates apart from its owners.
- 11. Types of corporations •C-corporation: The most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation. •Subchapter S corporation: A corporation that is
- 12. Advantages of corporations •Can raise money by issuing shares of stock. •Offers owners limited liability. Limited liability: Owners are liable only up to the amount of their investments. •People can easily enter or leave the business
- 13. Disadvantages of corporations •Legal assistance is needed to start a corporation. •Start-up is costly. •Corporations are subject to more government regulations than partnerships
- 14. Alternate approaches to starting a business •Buy an existing business. •Enter a family business. •Own a franchise business.
- 15. Advantages of buying an existing business •Existing businesses already have customers, suppliers, and procedures. •Seller of the business may be willing to
- 16. Disadvantages of buying an existing business •Business may be for sale because it is not making a profit. •Problems may be inherited with the purchase
- 17. Advantages to entering a family business •There is a certain sense of pride and accomplishment that comes from being part of a family endeavor. •A business can remain in the family for generations.
- 18. Disadvantages to entering a family business •Senior management positions are often held by family members who may not be the best qualified. •It may be difficult to retain qualified employees who are not members of the family. •Family politics may affect decisions regarding the
- 19. Own a franchise business Franchise: A legal agreement that gives an individual the right to market a company’s products or services in a particular area. Franchisee: A person who purchases a franchise agreement. Franchisor: The person or company who sells a franchise. Initial franchise fee: The fee the franchise owner pays in return for the right to run the business.
- 20. Advantages of purchasing a franchise business An established product or service is being provided. Franchisors often offer management, technical, and other assistance. Equipment and supplies may be less
- 21. Disadvantages of purchasing a franchise business The cost of franchises may be high, which can reduce profits. Franchise owners are limited in the decisions they can make regarding the business. The performance of other franchises impact on the