Copyright © 2007 South-Western. All rights reserved. Chapter 5 Selecting a Form of Business Ownership.

Slides:

Advertisements

Similar presentations

Read to Learn Describe the advantages and disadvantages of the three major forms of business organizations. Describe how cooperatives and nonprofits are.

Advertisements

3.06 Classify the Forms of Business Ownership

Halaman 1 Matakuliah: J0084 / Introduction to Management and Business Tahun: 2007 Versi: 1 / 3 Pertemuan 18 (Eighteenth Meeting) Selecting Type of Business.

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.

Introduction to Corporate Finance

Chapter 1: Outline Corporate Finance and the Financial Manager

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-1 Chapter (1) An Overview Of Financial Management.

Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 5 Selecting A Form of Business Ownership.

Selecting a Form of Business Ownership

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Introduction To Corporate Finance.

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.

Business Structures. Three different business structures  Sole Proprietorship  Partnership  Corporations.

CHAPTER ONE Introduction To Corporate Finance. Key Concepts and Skills Know the basic types of financial management decisions and the role of the financial.

A sole proprietorship is a business owned and operated by one individual Disadvantages:  Sole proprietors have unlimited liability and are legally responsible.

Types of Business Ownership Chapter 6.1

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE1 Forms of Business Ownership Goals Understand the three major forms of business ownership.

Introduction to Corporate Finance

Mr. Duggan/ Economics BUSINESS AND LABOR. SOLE PROPRIETORSHIPS Is a business owned and managed by a single individual.

Forms of Business Ownership

1 Chapter 7 Business Ownership and Organization 9/12/2015 © ©1999 South-Western College Publishing.

Chapter 1 Introduction to Corporate Finance Copyright © 2012 by McGraw-Hill Education. All rights reserved.

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 0 Chapter 1 Introduction to Financial Management.

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Introduction To Corporate Finance.

LESSONS ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 SELECT A TYPE OF OWNERSHIP An Existing Business A Franchise.

Part I: Organization of a Business Introduction to Business 3e 2 Copyright © 2004 South-Western. All rights reserved. Selecting a Form of Business Ownership.

Click here to advance to the next slide.. Chapter 6 Business Ownership and Operations Section 6.1 Types of Business Ownership.

Ch. 7: Types of Business Ownership. Sole Proprietorships  Owned and operate by one person  Easiest and Most Popular!  Approximately 76% of all business.

Principles of Finance T ODAY’S S ESSION ‘Introduction to Finance’  Chapter One : An overview of managerial Finance.

Chapter 3: Forms of Ownership1Copyright 1999 Prentice Hall Publishing Company Choosing a Form of Ownership.

“C” Corporation Unlimited owners (shareholders) Unlimited owners (shareholders) No personal liability for shareholders No personal liability for shareholders.

Click here to advance to the next slide.. Chapter 6 Business Ownership and Operations Section 6.1 Types of Business Ownership.

Microeconomics Business Organizations. Microeconomics: Overview Study of individual businesses and households SMALL scale decisions –A firm’s business.

Sole Proprietorship, Partnership and Corporations.

MultiMedia by Stephen M. Peters© 2001 South-Western College Publishing Chapter 2 Selecting a Form of Business Ownership Introduction to.

Chapter 5 Selecting a Form of Business Ownership.

Chapter 3 Forms of Ownership Copyright 2006 Prentice Hall Publishing Company 1 Choosing a Form of Ownership.

Choosing Forms of Ownership CHAPTER 2 BBE2313 FUNDAMENTAL OF ENTREPRENUERSHIP.

Business Firms. Why do Business Firms Exist? Business firms exist when people working together can produce more than the sum of individuals working alone.

What we are studying next… Send your guess in!. Mr. Hudnall.

Forms of Business Ownership. “C” Corporation Unlimited owners (shareholders) No personal liability for shareholders Taxed on earnings at corporate level.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill Sole Proprietorships One person Advantages –Easy to start, easy out; you are.

Forms of Business Organization (sole proprietorship, partnership, and corporation)

Bell Ringer Activity Identify 3 local business and determine what type of businesses they are (sole proprietorship, partnership, corporation).

CONTEMPORARY ECONOMICS© Thomson South-Western 8.2Sole Proprietorships and Partnerships  Describe the advantages and disadvantages of sole proprietorships.

A business organization is an establishment formed to carry on commercial enterprise.

Consider: What American business do you think tops Fortune 500’s list of US companies in 2014? The Last Word: Ch 7 Review/Unit 3 Test next Tuesday.

Business Structures How can businesses be legally organized?

Chapter 6 Business Ownership and Operations

Types of Businesses. I) Proprietorship A) One individual owns the business –1) Any profit is the owner’s profit. –2) Easy to start –3) Little Gov’t Regulation/Taxes.

Learning Objectives 1. Compare the advantages and disadvantages of the sole proprietorship 2. Contrast general and limited partnerships 3. Compare the.

Advantages and disadvantages of business ownerships.

Forms of Business Ownership Dr. Marilynn K. Skinner.

Essential Standard 2.00 Understand the nature of business. 1.

> > > > Objective 3.01: Factors Influencing Entrepreneurship.

Types of Businesses. ENTREPRENEUR Someone who takes the necessary risks and rewards in starting a business. An Entrepreneur is out to make money. He/she.

Chapter 3 Forms of Ownership Copyright 2006 Prentice Hall Publishing Company 1 Choosing a Form of Ownership.

THE “THREE” TYPES OF BUSINESS CHAPTER 22, SECTION 1.

Objective 3.01: Factors Influencing Entrepreneurship

Business Structures Chapter 8

The Main Idea Sole proprietorships, partnerships, and corporations are the most common forms of business organization. Cooperatives, nonprofits, and.

For Reals Today: Business Organizations

Bell-Work Please state how each of the businesses are organized? Think about how business are owned. Ching’s Hot Wings (Sole Proprietorship) FedEx (Corporation)

Types of Business Ownership

Special Types of Business Ownership

Objective 3.01: Factors Influencing Entrepreneurship

Introduction to Business

Business Organization

From Class Econ Notes Mr. Park.

Types of Business Organizations

Sole Proprietorship, Partnership and Corporations

Presentation transcript:

Copyright © 2007 South-Western. All rights reserved. Chapter 5 Selecting a Form of Business Ownership

Copyright © 2007 South-Western. All rights reserved. Learning Objectives Selecting a Form of Business Ownership Existing FirmsSole Proprietor Risk & Return Partnership Corporation

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. The Key Decisions in Running a Business

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Selecting a Form Sole Proprietor Partnership Corporation Risk & Return Existing Firms Insert Chart from page 159

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Sole Proprietorship Sole Proprietor Partnership Corporation Risk & Return Existing Firms 10% Profit 70% of all Businesses Single Owner

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Sole Proprietorships Sole Proprietor Partnership Corporation Risk & Return Existing Firms Disadvantages - Losses - Unlimited Liability - Limited Funds - Limited Skills Advantages - Earnings - Easy Organization - Control - Low Taxes

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Partnership Sole Proprietor Partnership Corporation Risk & Return Existing Firms General Partnership Limited Partnership General Partners Limited Partners

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Partnerships Sole Proprietor Partnership Corporation Risk & Return Existing Firms Disadvantages - Shared Control - Unlimited Liability - Shared Profits Advantages - Additional Funds - Shared Losses - Specialization

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. S-Corporations Sole Proprietor Partnership Corporation Risk & Return Existing Firms Limited Liability Personal Tax

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Limited Liability Company LLC Sole Proprietor Partnership Corporation Risk & Return Existing Firms Limited Liability Partnership Benefits

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Corporations Sole Proprietor Partnership Corporation Risk & Return Existing Firms

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Stockholder Returns Sole Proprietor Partnership Corporation Risk & Return Existing Firms Stock PriceDividends Publicly Held Privately Held

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Corporations Sole Proprietor Partnership Corporation Risk & Return Existing Firms Disadvantages - High Expense - Financial Disclosure - Agency Problems - High Taxes Advantages - Limited Liability - Access to Funds - Ownership Transfer Capital Gains

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Double Taxation Sole Proprietor Partnership Corporation Risk & Return Existing Firms

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Comparing Business Forms Sole Proprietor Partnership Corporation Risk & Return Existing Firms Can Change No Magic Answer

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Equity Sole Proprietor Partnership Corporation Risk & Return Existing Firms Firm “A” Partnership Firm “B” Corporation After-tax earnings $15 million Owner’s Equity $100 million$300 million Return on Equity 15%5%

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Ownership & Risk Sole Proprietor Partnership Corporation Risk & Return Existing Firms # of Owners and funds Risk (R1)

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Owning an Existing Business Sole Proprietor Partnership Corporation Risk & Return Existing Firms Family Business Existing Business Franchise

Selecting a Form of Business Ownership Copyright © 2007 South-Western. All rights reserved. Franchise Sole Proprietor Partnership Corporation Risk & Return Existing Firms Disadvantages - Sharing Profits - Less Control Advantages - Proven Style - Name Recognition - Financial Support Chain Style Distributorship