2.01 Types of Business Ownership
Gavin Barnes 2/17/16 3rd POBF
Special Types of Ownership
- A partnership is a business owned and controlled by two or more people who have entered into a written agreement. Example: Warner Bros., Microsoft, and Apple.
- An corporation is owned by one or more shareholders and managed by a board of directors. Example: 7-Eleven, AOL, and AT&T.
- Cooperatives are owned by members, serves their needs and is managed in their interest. Example: Credit unions, Housing cooperatives
- A franchise is permission to operate a business to sell products and services in a set way. Example: McDonald's, SUBWAY, and KFC
- Owned by two or more shareholders
- managed by the board of directors
- Determined by purchase of stock
- Advantages- Easier to obtain capital. Limited liability for shareholder.
- Disadvantages- Double taxation. Increased government regulations and legal restrictions.
- Limited liability for the shareholders
- Example: AOL, 7-eleven
- Selling your stock
- The people buying the stock are the ones paying for it and keeping the corporation up.
- Two or more people
- Written Agreement between all members
- Shared management between all owners
- When two or more people want to start a business together
- Advantages- More capital and credit available than a sole proprietorship, Work load easier to mange than a sole proprietorship.
- Disadvantages- Shared profits, responsible for each others decisions.
- Unlimited Liability
- Example: Microsoft, Apple
- If one breaks the agreement or leaves the partnership
- You ever is in the partnership have to pay for it
- One person
- Owner participates in all day-to-day operations
- Buying and selling goods
- Advantages-Easy to form, Complete control of business
- Disadvantage- Limited capital, Unlimited liability
- unlimited liability
- You have to pay for the debt if necessary
- Decision or life of owner
- personal, gifts, borrowed, and others may vary
- Computer Repair Services,Catering Company