Types of Business ownership
Brody Broyles_2-17-16_pd 2_POBF2
Special Types of Ownership
- The general partnership has limited liability and someone has to take full responsibility. Ex: Law offices of Smith & Jones
- A limited partnership has limited liability and someone has to take general responsibility. Ex: Geo-place
- A limited liability partnership has limited liability and no one assumes general responsibility. Ex: Walmart
- General corporation: Visa
- Close corporation: Google
- S corporation: Intel
- Ex: foreign, alien, public
- Cooperative: Working together or acting willingly for a common purpose.
- Franchise: The right or license granted by a company to an individual or group to market its products or services in a specific territory
- Ex: McDonalds
Corporation
- One or more owners
- A group of individuals
- By filing the Articles of incorporation
- Ownership is readily transferable and has separate legal existence
- Disadvantages are double tax and manipulation
- limited liability
- Ex: Nike
- the owner sells their shares in the corporation
- by making profit off of sales
Corporations Made in the U.S.
Most Corporations
Different types
Partnership
- Two or more
- Dormant, General, Limited, Secret, Silent
- A General partner
- By signing a partnership agreement a getting enough money to get rolling
- no income tax and easy to establish
- Shared profits and unlimited liability
- The owner sales their shares in the company
- By investing money or using personal savings
Proprietorship
- one owner
- the one owner
- you just start one because they aren't like any of the others
- gets all of the profit and complete decision making
- held personally responsible and the decision making is a lot harder for new things
- limited liability
- Ex: Subway
- By stopping the production of the items that you are selling
- By using loans or money that you put into it to start t up