Forms of Business Ownership & Business Law Part I BCS-BE-16: The student evaluates sole...
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Transcript of Forms of Business Ownership & Business Law Part I BCS-BE-16: The student evaluates sole...
Forms of Business Ownership & Business Law Part I
BCS-BE-16: The student evaluates sole proprietorships as a form of business.
BCS-BE-17: The student evaluates the different types of partnerships as a form of business.
BCS-BE-18: The student evaluates the different type of corporations as a form of business.
BCS-BE-19: The student chooses the most appropriate form of business ownership for any planned business.
BCS-BE-20: The student evaluates franchising as a form of business ownership.
Organizing a Business
The three main types of business organizations are:
______Proprietorships
_________ _________
Sole Proprietorships
sole proprietorshipa business ______ by one person
About three-quarters of all _____ in the United ______ are sole proprietorships.
Graphic Organizer
Advantages of Sole Proprietorships
Easy to ______Proprietors are
in _______
Proprietors ______all the profits
Taxes are ______than a corporation’s
Sole Proprietorships
unlimited liabilitywhen the owner is responsible for the company’s _____
A major _______of owning a sole proprietorship is that the _____ has unlimited liability.
Graphic Organizer
Disadvantages of Sole Proprietorships
Limited _______to creditMany run out
of _______
The owner may not have the necessary ________
The ________ endswhen the owner dies
Partnerships
partnershipa business owned by two or more ______ who share its risks and rewards
To start a partnership, you need a ________agreement.
Graphic Organizer
Advantages of Partnerships
Easy to _______
Easier to______capital
Easier toobtain ______
Not dependent on a sole ______
Only _______once
_______ in skills
Graphic Organizer
Disadvantages of Partnerships
Business risk is _______
Unlimited ______and
financial liability is shared
If one partner makes a mistake,
all ______ are responsible
Corporations
corporationa company that is registered by a ______ and operates apart from its owners
To form a corporation, the owners must get a _______ charter from the state where their main office will be located.
Corporations
limited liabilityholds a firm’s owners responsible for no more than the _______ that they have invested in it
Limited liability is a major ______ of a corporation.
Graphic Organizer
Advantages of Partnerships
Limited ______Ability to raise
______ byselling stock
Business doesnot end when an
______ dies
Graphic Organizer
Disadvantages of Partnerships
_______ taxationMore
______regulationDifficult and
______ to start
1. Income is taxed.2. Stockholders pay taxes
on profits issued to them
Other Ways to Organize a Business
Other ways to organize a business include:
___________________
Organization________
Other Ways to Organize a Business
cooperativean organization that is owned and _______ by its members
The purpose of a cooperative is to save ______ on the purchase of certain goods and ______.
Other Ways to Organize a Business
nonprofit organizationa type of business that focuses on providing a _______, not making a profit
A nonprofit organization does not pay ______ because it does not make a ______.