Remember – in America, businesses are privatelyprivately owned, even those that are corporately owned. I.e. NOT owned by the government [the State]

Types of Business organizationTypes of Business organization Sole proprietorshipsSole proprietorships:: Unlimited possibilitiesUnlimited possibilities Unlimited liability Unlimited liability Nearly ¾ of U.S. Nearly ¾ of U.S.

businessesbusinesses About 5% of salesAbout 5% of sales Why?Why? The engine of U.S. The engine of U.S.

economy and jobs economy and jobs creationcreation

Small Bus. Admin.Small Bus. Admin.

Partnerships:Partnerships: Shared opportunities Shared opportunities

and liabilitiesand liabilities Combined expertiseCombined expertise Greater fund-raising Greater fund-raising

abilityability Complex structures Complex structures

and relationshipsand relationships General vs. Limited General vs. Limited

PartnersPartners DangerDanger: :

Friends/family relationsFriends/family relationsTrust factorTrust factor

Corporations: Corporate, public ownership; Organization much like an

individual under the lawComplex, hierarchical structurePart ownerships sold in shares of

the company or stockControl a function of # of shares

ownedMost effective at raising large

sums for startup or expansionLimited liability for ownersDividends are part of the profitsStock gains value as sales and

perception of value increase, but the opposite is also true…

Generate tremendous wealth – nearly ¾ of all sales in U.S.