INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

15
INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP

TAGS:

Transcript of INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

Page 1: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

INTRODUCTION TO BUSINESS AND TECHNOLOGY

FORMS OF OWNERSHIP

Page 2: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

SMALL BUSINESS

• Independent business with fewer than 500 employees

• 99.9% of ~26 million US businesses• Responsible for 60-80% of all new jobs• Owner = Manager• One or few locations• Small market• Not dominant in field

Page 3: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e

Page 4: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

SOLE PROPRIETORSHIP

• Owned by one person• Easiest and least expensive• Examples:

• Farms• Retail establishments• Small service businesses• Home based businesses (caterer, consultant, computer

programmers)

Page 5: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e

Ease of establishment

Self-satisfaction

Privacy

Tax advantages

Unlimited liability

Personal pressure

Difficult to get funding

Limited life

Sole ProprietorshipSole Proprietorship

Advantages Disadvantages

Page 6: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.
Page 7: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 5 - 7

Easy to EstablishEasy to EstablishEasy to EstablishEasy to Establish Tax AdvantagesTax AdvantagesTax AdvantagesTax Advantages

Strength in NumbersStrength in NumbersStrength in NumbersStrength in Numbers Diversity of SkillsDiversity of SkillsDiversity of SkillsDiversity of Skills

Extended LifeExtended LifeExtended LifeExtended LifeIncreased CapitalIncreased CapitalIncreased CapitalIncreased Capital

Partnership AdvantagesPartnership Advantages

Page 8: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 5 - 8

PARTNERSHIP DISADVANTAGESPARTNERSHIP DISADVANTAGES

UnlimitedLiability

UnlimitedLiability

InterpersonalProblems

InterpersonalProblems

UnproductivePartners

UnproductivePartners

ManagingPartner

ManagingPartnerLaw SuitsLaw SuitsDebtsDebts

Page 9: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 5 - 9

CORPORATIONSCORPORATIONS

Enter Into ContractsEnter Into Contracts

Buy and Sell PropertyBuy and Sell Property

Sue and Be SuedSue and Be Sued

Face Limited LiabilityFace Limited Liability

Page 10: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 5 - 10

CorporationsCorporations

Access to capital

Limited liability

Increased liquidity

Unlimited life span

Excess paperwork

Burdensome costs

Double taxation

Disclosure requirements

Advantages Disadvantages

Page 11: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.
Page 12: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

THE FRANCHISING ALTERNATIVE

• Product franchise

• Manufacturing franchise

• Business-format franchise

©2007 Prentice Hall6-12

Page 13: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

EVALUATING A FRANCHISE

• Initial franchise

• Periodic royalties

• Trademarks and names

• Advertising and

promotion

• Business location

• Exclusive territory

• Right of first refusal

• Equipment and supplies

• Agreement termination

• Franchise agreement

©2007 Prentice Hall6-13

Page 14: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

PROS AND CONS OF FRANCHISING

©2007 Prentice Hall6-14

Advantages

Get a viable business

Name recognition

Network of support

Blueprint for success

Disadvantages

No guarantee of wealth

High monthly royalties

Limited independence

Limited flexibility

Page 15: INTRODUCTION TO BUSINESS AND TECHNOLOGY FORMS OF OWNERSHIP.

THE END!!


Copyright 2008 Prentice Hall Publishing 1 Chapter 5: Forms of Ownership Forms of Business Ownership.

Copyright 2008 Prentice Hall Publishing 1 Chapter 5: Forms of Ownership Forms of Business Ownership.

Types of Organizations Forms of Business Ownership

Types of Organizations Forms of Business Ownership

Arguments for forms of ownership

Arguments for forms of ownership

FORMS OF OWNERSHIP. CORPORATE STRUCTURE · Forms of ownership, sole proprietorship, a single individual, most common form of ownership; partnerships, easy to start, partners, to be

FORMS OF OWNERSHIP. CORPORATE STRUCTURE · Forms of ownership, sole proprietorship, a single individual, most common form of ownership; partnerships, easy to start, partners, to be

Other Forms of Worker Ownership

Other Forms of Worker Ownership

Forms of Business Ownership and Organization

Forms of Business Ownership and Organization

forms of ownership

forms of ownership

Other Forms of Worker Ownership Loren Rodgers.

Other Forms of Worker Ownership Loren Rodgers.

Forms of buiness ownership

Forms of buiness ownership

Week-2; Forms of Ownership

Week-2; Forms of Ownership

Forms of business ownership

Forms of business ownership

4.Forms of Real Estate Ownership

4.Forms of Real Estate Ownership

Unit 1 Forms of Ownership

Unit 1 Forms of Ownership

Ch05 Forms of Ownership

Ch05 Forms of Ownership

Unit 3-Forms of Business Ownership

Unit 3-Forms of Business Ownership

Forms of Business Ownership

Forms of Business Ownership

Forms of Ownership and Franchising - econ.iastate.edu of Ownership and Franchising Forms of ... Chapter 4: Forms of Ownership ... nFor tax purposes, however, an S corporation is

Forms of Ownership and Franchising - econ.iastate.edu of Ownership and Franchising Forms of ... Chapter 4: Forms of Ownership ... nFor tax purposes, however, an S corporation is

2. the Forms of Business Ownership

2. the Forms of Business Ownership

Legal Forms of Business Ownership

Legal Forms of Business Ownership

Forms of Business Ownership - Intro to Business

Forms of Business Ownership - Intro to Business