1. 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 the different types of partnerships as a form of business. BCS-BE-18: The student evaluates the different type of corporations as a form of business. BCS-BE-19: The student chooses the most appropriate form of business ownership for any planned business. BCS-BE-20: The student evaluates franchising as a form of business ownership.

2. Organizing a Business The three main types of business organizations are: ______ Proprietorships _________

3. U.S. Sole Proprietorships, Partnerships, and Corporations Figure 6.1

4. Sole Proprietorships sole proprietorship a business ______ by one person About three-quarters of all _____ in the United ______ are sole proprietorships.

5. Graphic Organizer Advantages of Sole Proprietorships Easy to ______ Proprietors are in _______ Proprietors ______all the profits Taxes are ______than a corporation’s

6. Sole Proprietorships unlimited liability when the owner is responsible for the company’s _____ A major _______of owning a sole proprietorship is that the _____ has unlimited liability.

7. Graphic Organizer Disadvantages of Sole Proprietorships Limited _______to credit Many run out of _______ The owner may not have the necessary ________ The ________ ends when the owner dies

8. Partnerships partnership a business owned by two or more ______ who share its risks and rewards To start a partnership, you need a ________agreement.

9. Graphic Organizer Advantages of Partnerships Easy to _______ Easier to ______capital Easier to obtain ______ Not dependent on a sole ______ Only _______once _______ in skills

10. Graphic Organizer Disadvantages of Partnerships Business risk is _______ Unlimited ______and financial liability is shared If one partner makes a mistake, all ______ are responsible

11. Corporations corporation a company that is registered by a ______ and operates apart from its owners To form a corporation, the owners must get a _______ charter from the state where their main office will be located.

12. Corporations limited liability holds a firm’s owners responsible for no more than the _______ that they have invested in it Limited liability is a major ______ of a corporation.

13. Graphic Organizer Advantages of Partnerships Limited ______ Ability to raise ______ by selling stock Business does not end when an ______ dies

14. Graphic Organizer Disadvantages of Partnerships _______ taxation More ______regulation Difficult and ______ to start 1.Income is taxed. 2.Stockholders pay taxes on profits issued to them

15. Other Ways to Organize a Business Other ways to organize a business include: __________ _________ Organization ________

16. Other Ways to Organize a Business cooperative an organization that is owned and _______ by its members The purpose of a cooperative is to save ______ on the purchase of certain goods and ______.

17. Other Ways to Organize a Business nonprofit organization a type of business that focuses on providing a _______, not making a profit A nonprofit organization does not pay ______ because it does not make a ______.

18. Other Ways to Organize a Business franchise a contractual agreement to use the name and sell the ________ or services of a company in a designated geographic area To run a franchise, you have to invest _______ and pay franchise fees or a share of the ______.