Understand principles of business 01.00

Types of Business Organizations Compare the main types of business organization: Sole proprietorship, partnership, corporation, and franchise Sole Proprietorship Owned by one person Examples Floral shops Bookstores Farms Advantages Easy to start Owner is his/her own boss Owner keeps all profits Disadvantages Owner must pay for everything needed for the business

Difficult to obtain capital needed to start Owner might lack business skills Unlimited liability owner has full responsibility for companys debts and can lose entire investment as well as personal assets Partnership Owned by two or more people Examples Law firms Medical practices Auto Body Repair Advantages Relatively easy to start Easier to obtain capital than in a sole proprietorship Partners share skills and talents Partners share risks Disadvantages

Partnership agreement is needed to start Partners might not get along well Partners must share profits Partnership must be reorganized if one partner quits Partners share unlimited liabilityall partners share the responsibility of a bad decision made by one partner (including Corporation Owned by many people stockholders, but treated by law as one person (can own property, pay taxes, make contracts) Advantages Corporations can raise money by selling stock Limited liability stockholders can only lose what they have invested

Corporation continues when stockholders sell stock Corporation can always make money by selling more stock Examples Nike IBM Google Disadvantages Corporations are taxed on their profits Government closely regulates corporation More difficult to start a corporation Must obtain a corporate charter Franchise Franchise is a contractual agreement to sell a companys products or services in a

specific geographic area Disadvantages Advantages Easy to start Franchisee can rely on good name and expertise of the parent company Franchisee can get needed guidance in operating the business Some franchisors are strict about how the business is run Franchise is limited in what products or services can be sold Franchise must operate like every other franchise Examples Taco Bell Blockbuster McDonalds

Recently Viewed Presentations

  • International Monetary System and Exchange-Rate Systems

    International Monetary System and Exchange-Rate Systems

    The cost of capital is the minimum rate of return an investment project must generate in order to pay its financing costs. ... There can be volatility spillover from overseas markets. Foreigners may acquire a controlling interest and challenge the...
  • Ontario - About

    Ontario - About

    Weather/Climate. Spring - March 20 through June 20. Mostly rainy, 8 degrees. ... Ontario is divided into four regions, including the Canadian Shield, Hudson Bay, Great Lakes and St. Lawrence. Black Bay Peninsula.
  • Grounds of Judicial Review - unitn.it

    Grounds of Judicial Review - unitn.it

    Introduction The emergence of judicial review is linked to the Diceyan notion of the rule of law. There will be reference to the distinction between review and appeal and the special nature of public law remedies. The significance of changes...
  • BFTP TAC - Harvey Mudd College

    BFTP TAC - Harvey Mudd College

    Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an...
  • Role of Flux Networks in Biogeosciences Dennis Baldocchi

    Role of Flux Networks in Biogeosciences Dennis Baldocchi

    Boundary Layer Budgets using Fluxes and High Precision CO2 measurements Spectral reflectance measurements and Digital Photos across the network for phenology and dynamics of structure and function Spatial-Temporal Network-Scale Analysis Real-time Data Assimilation Matching Footprints of Tower and Pixels Model...
  • 文史資料 (Wen shi zi liao)

    文史資料 (Wen shi zi liao)

    Distinguish such wording from that of a section title that is to be placed after a common title (see 12.1B4-12.1B6). 360 0 Fu kan di 1 hao (Minguo 36 nian 3 yue [Mar, 1947])-fu kan di 1 juan di 4...
  • Dearne Valley - Ponteland Community Middle School

    Dearne Valley - Ponteland Community Middle School

    Arial Lucida Sans Unicode Wingdings 3 Verdana Wingdings 2 Calibri Wingdings Concourse 1_Concourse 2_Concourse 3_Concourse 4_Concourse 5_Concourse 6_Concourse 7_Concourse Ford Castle 2018 PowerPoint Presentation Itinerary Accommodation Activities Day 1 Sample timetable Day 2 Timetable Day 3 Timetable Equipment Equipment Equipment...
  • Temperate Desert - Montgomery County Schools

    Temperate Desert - Montgomery County Schools

    Climatogram. Climatograph of Salt Lake City which is in the Temperate Desert of The United States. Producers. Prickly Pear, Sagebrush, Saguaro Cactus, Phreatophytes, Halophytes. Adaptations: Reduction of leaves, often into spines for protection.