Post on 16-Dec-2015
Business Know-how Housing and Interiors
Entrepreneur
A person who assumes risk of starting and operating a business for the purpose of making a profit
Acquiring a Business
Take over a family business Buy an existing business Start a business on your own
One Owner
Proprietorship
Sole Proprietorship
Advantages Easy start up All profits to owner Business pays no
income tax Little government
regulations Direct control
Disadvantages Unlimited liability Difficulty in financing
Limited life (death) All losses
responsibility of owner
Partnership
Two or more owners
Partnership
Advantages Easy start up Business pays no
income tax Limited
government regulations
Shared financing and losses
Disadvantages Unlimited liability Shared profits Limited life(death) Shared control
Partnership
General All partners are
general All partners-
unlimited liability All partners-full
management of business
Limited Usually an investor Usually does not
manage day-to-day activities
Usually limited to the extent of the investment
Corporation
Owned by stockholders
Corporation
Advantages Limited liability Ease in raising
capital $$$ Continuity of
business Ownership is easily
transferred
Disadvantages Expensive to form Profits depend on
investment Double taxation Lack of control by
owners High government
regulations
Franchise
Décor and You
Color Your Carpet
Designs of the Interior
Decorating Den
Franchise
Advantages Established name Reduced risk of
failure Benefit of national
name Training provided
Disadvantages Cost to purchase is
high Additional fees for
local advertising Percentage of sales
goes to franchisor Lack of freedom in
running business