Forms of Business Ownership. By: Courtney Boutarfa. Sole Proprietorship. A business owned and managed by one person, the proprietor. . Advantages. Disadvantages. Owner may lack the necessary skills and abilities to run the business Owner might lack capital
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By: Courtney Boutarfa
A business owned and managed by one person, the proprietor.
Owner may lack the necessary skills and abilities to run the business
Owner might lack capital
Owner will bear the losses if the business fails
The business could be discontinued if the owner becomes sick or dies
A business owned by two or more people
Profits are shared between the owners
Disagreements can occur
Unlimited financial liability
Each partner bound by contracts of others
Uncertain life of the business
Difficulty in withdrawing from partnership
A business owned by a group of people and authorized by the state in which it is located to act as though it were a single person
Government regulations and reports
Type of business that sells a good or service directly to the public. Examples are department stores or fast food places, etc.
A legal agreement in which a distributor buys the right to sell the franchising company’s product or service under the company’s name and trademark.
Franchisor-the parent company of a franchise agreement that provides the product or service
Franchisee-the distributor of a franchised product or service
Type of business that buys goods in large amounts and resells small amounts to all other businesses except the standard customer. For example, a beauty supply retailer can go buy all their products from a wholesaler and sell it in their shop for customers to buy. The beauty supply store’s customers cannot go buy from a wholesaler.
Businesses which acts as a link between producers and consumers in a channel of distribution.
The businesses that make finished products out of the raw processed goods that producers give them. Manufacturing is when machines and energy is used to create a finished product. Manufacturing includes design, sales, management and marketing
A business that collects all raw materials needed to create a product for another business.
Businesses that change raw goods into more finished products."Food processing plant" means a commercial operation that manufactures, packages, labels, or stores food for human consumption and does not provide food directly to a consumer .
Agreement among two or more businesses to work together to provide a good or service.
Unlimited liability means that the owner has full legal and financial responsibility for a business
Limited Liability Partnership & Company
LLC is a special type of corporation that is taxed as if it were a sole proprietorship or partnership.
An organization that does not pay taxes and does not exist to make a profit. The profit made is put back into the business to operate and stay in business. These are places like schools and churches.
Corporation that has between 1 and 100 shareholders and does not pay federal income taxes. The shareholders get dividend from the company and that is taxed as income.