2.01 Types of Business Ownership
By: Chase Lowery 2/17/16 POBF 3rd period
Special Types of Ownership
-A type of cooperative is a sub chapter s; treats partners as individuals by taxing them once.
-A franchise is when permission is granted to operate a small business to sell products and services in a set way. some examples of a franchise include Burger King and Mcdonalds
Proprietorship
-managed by owner
-starts by selling goods and services
-some advantages are its easy to start and you can have complete control of the business
-some disadvantages include limited capital and the business has a limited lifetime depending on the owners life
-unlimited liability
-ownership is determined on the owners life or their decision
-sources of investment are personal, gifts, borrowed and other options
Partnership
-who manages is determined by the partnership agreement
-business starts of with a partnership
-two advantages is that its easy to start up and the work load is shared
-two disadvantages are shared profit and decisions are made jointly
-unlimited liability depending on partnership type
-ownership is determined by actions of partners, bankruptcy, death, etc
sources of investment are personals of the partners gifts, borrowed and other options
corporation
-managed by managers, board of directors, and shareholders
-starts by filling of an article of incorporation
-two advantages are capital is easy to obtain and unlimited lifetime
-two disadvantages are double taxation and government regulation
-unlimited liability
-may have unlimited lifetime
-sources of investment is the purchase of stocks