2.01 Type of Business Ownership
Matthew Kennedy 2/17 3rd pobf
Corporation
- corporations have one owner but they sell parts of there business in stock
- the CEO manages a corporation
- the government will allow you to sell stock and you have to sign an agreement
- 2 advantages are easy to obtain capital and unlimited lifetime
- 2 disadvantages are double taxation and government regulates
- limited liability
- example is Nike
- corporations has unlimited life
- they get there money by selling stock
Parttnership
- partnership has 2 or more owners
- there are 2 types of partners general and investors
- the managers are the partners
- 2 or more people want to start a business and they go register with the state
- 2 advantages are that there is more capital and credit and work load is shared
- 2 disadvantages are that profits are shared and limited lifetime
- unlimited liability
- sony is an example
- ownership terminates because a partner died or retire or just don't want in the business
- source of investment comes from the partners
sole proprietorship
- one owner
- the manager is the one owner
- one person with a dream
- 2 advantages are you get all profit and one time taxation
- 2 disadvantages are that limited capital and limited lifetime
- unlimited liability
- bob's pet sitting
- ownership is terminated by bankruptcy or owner dies
- sources of investment is whatever you have