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