Principles of Business, Marketing, and Finance Forms of Business Ownership Copyright © Texas Education Agency, 2011. All rights reserved.

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Principles of Business, Marketing, and Finance Forms of Business Ownership Copyright © Texas Education Agency, All rights reserved.

Changing Employment Trends New jobs evolve while old jobs disappear. The U.S. has an aging population. Minorities are making up a larger percentage of the workforce. 2 Copyright © Texas Education Agency, All rights reserved.

Businesses in the U.S. Economy Employ millions of Americans Compensate owners and investors Pay taxes to federal, state, and local governments Make and distribute products and services needed by consumers, government, and businesses 3 Copyright © Texas Education Agency, All rights reserved.

Service Business Carry out activities that are consumed by its customers Intermediaries Sell goods and services Producers Create products and services used by other individuals and businesses Three Major Categories of Businesses 4 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Sole Proprietorship –Individuals who want to work and make decisions independently –Little government regulation –Great risk for the owner 5 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Partnership –The partnership is owned and controlled by two or more people. –Partners share an idea for a business. –Partners want to cooperate in managing and investing, and want to share the risks and rewards of the business. 6 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Corporation –Separate legal entity owned by one or more shareholders and managed by a board of directors More difficult to form Subject to more regulations Limited liability for investors 7 Copyright © Texas Education Agency, All rights reserved.

Limited Liability Partnership & CompanyJoint Venture S- Corporation Nonprofit Corporation FranchiseCooperative Other Forms of Business Ownership 8 Copyright © Texas Education Agency, All rights reserved.