1. BA 101 Introduction to Business 5. Forms of Business Ownership

2. Business Ownership Three Common Forms Sole Proprietorships Sole Proprietorships Partnerships Corporations

3. Ease of establishment Self-satisfaction Privacy Tax advantages Unlimited liability Personal pressure Difficult to get funding Limited life Sole Proprietorship AdvantagesDisadvantages

4. Business Partnerships General Partnerships Limited Partnerships UnlimitedLiabilityUnlimitedLiability EqualPartnersEqualPartners ShareOwnershipShareOwnershipLimitedLiabilityLimitedLiability UnequalPartnersUnequalPartners PassiveInvestorsPassiveInvestors

5. Easy to Establish Tax Advantages Strength in Numbers Diversity of Skills Extended Life Increased Capital Partnership Advantages

6. Partnership Disadvantages Unlimited Liability Unlimited Liability Interpersonal Problems Interpersonal Problems Unproductive Partners Unproductive Partners Managing Partner Managing Partner Law Suits Debts

7. Partnership Agreement Decision-Making Authority Dispute Resolution Division of Profits Expected Contributions

8. Corporations Enter Into Contracts Buy and Sell Property Sue and Be Sued Face Limited Liability

9. Ownership of Corporations Shareholders Last Claim on Distributed Profits and Assets Cash or Stock Dividends Full Voting Rights Common Stock First Claim on Dividends and Assets Cash or Stock Dividends Minimal Voting Rights Preferred Stock

10. Public Versus Private OwnershipPublicCorporationPublicCorporationPrivateCorporationPrivateCorporation Not Publicly Traded TradedFewShareholdersFewShareholdersPubliclyTradedPubliclyTradedManyShareholdersManyShareholders

11. Advantages of “Going Public” Ready supply of capital Increased liquidity Enhanced visibility Independent market value Increased flexibility

12. Disadvantages of “Going Public” High cost SEC filing requirements Reduced ownership control Demands of public exposure Pressure for quarterly results

13. Corporations  Access to capital  Limited liability  Increased liquidity  Unlimited life span  Excess paperwork  Burdensome costs  Double taxation  Disclosure requirements AdvantagesDisadvantages

14. Corporate Governance Common Shareholders Individuals Companies Non-profits Pensions Mutual Funds Board of Directors Dividends Corporate Affairs Strategic Plans Select Officers Finances Corporate Officers Chief Executive Chief Financial Chief Operations Employees of the Company Operations Finance Marketing Personnel Engineering ElectAppointHire

15. Business Combinations MergersMergersConsolidationsConsolidations LeveragedBuy-OutsLeveragedBuy-OutsAcquisitionsAcquisitions

16. Types of Business Mergers Vertical Horizontal Conglomerate Market Extension Product Extension

17. Mergers and AcquisitionsAdvantagesAdvantages Economies of Scale EfficienciesEfficiencies SynergiesSynergiesDisadvantagesDisadvantages High-Risk Corporate Debt Management Distractions Culture Clashes

18. Defenses Against Mergers and Acquisitions White Knight Shark Repellent Poison Pill HostileTakeoversHostileTakeovers Tender Offers Proxy Fights

19. Strategic Alliances and Joint Ventures Gain Credibility Expand Markets Access Technology Diversity Offerings Share Best Practices