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