2.01 Types of Business Ownership
By: Alex Mitchell
Special Types of Ownership
-Franchise: an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities providing a broadcasting service or acting as an agent for a company's products.
- A type of specialized partnership is Limited Liability partnership.
-Managers: Board of directors, and shareholders
-How is the Business started: Filling of an article of incorporation with state government.
-2 Advantages: 1. The capital is easy to obtain, 2. Decision making is shared.
-2 Disadvantages: 1. Double taxation, 2. More difficult to form.
-Limited or unlimited liability: Unlimited
-Source of investment: Purchase of stocks
-How is the ownership terminated: May have unlimited lifetime
- Ex: Lowe's and Improvement store
-Who manages- May be owner
-How is the business started- 1. Begin buying and selling goods and services, 2. May vary by state
-2 advantages- 1. Easy to form, 2. One time taxation
-2 disadvantages- 1. Limited capital, 2. unlimited liability
-limited or unlimited- Unlimited
-Example- Answers may vary
-How is ownership terminated- Decision or life of owner
-Source of investment- Personal, gifts, borrowed, and others may vary
-Who manages- Determined by partnership agreement
-How is the business started- With a partnership agreement. Varies by state
-2 advantages- 1. Easy to form, 2. Work load shared
-2 disadvantages- 1. Profits shared, 2. Difficult to add partners
-Limited or Unlimited- Unlimited Depending on partnership type
-How is ownership terminated- Actions of partners, bankruptcy , death, and/ or court order
-Sources of investment- Personals of partner(s) gifts, borrowed and others may vary