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

http://www.franchisedirect.com/top100globalfranchises/rankings/

http://cultivate.coop/wiki/Types_of_Cooperatives

http://www.rallipartnershiplaw.co.uk/top-8-business-partnerships-worked/

http://www.sourcewatch.org/index.php/List_of_corporations

Coporation

  • 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.

Partnership

  • 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

Sole Proprietorship

  • 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