Download Business

Name:________________________
Date:________________
Class:_______________________
Business Organizations
Proprietorship, Partnership, & Corporation
Sole proprietorship
 ______________________________
Business owned by one person. In this type of
business, the owner is in charge of all day to day aspects of the business.
 Partnership: Two or more people operating a business as co-owners,
partnerships usually create a legal agreement on splitting up the day to day aspects
who share all profits. __________________________________________________________
of running a business
__________________________________________________________________________________.
owners but when the owners change, the company does not dissolve. The owners
 Corporation: Many
___________________________________________________________________
are also known as the shareholders. They then elect a board of people to make company policies, decisions, etc.
___________________________________________________________________________________
__________________________________________________________________________________.
Sole Proprietorship
Advantages:
 Get to work by yourself and don’t have to ask for anyone else's opinion.
You keep all the profit
 _________________________________________________.
 The person can own the business for any duration of time and sell it
whenever they want to.
Income is taxed as personal income.
 _________________________________________________.
discontinue
 You can _____________________
your business whenever you want.
Disadvantages:
Hard decisions all fall on you
 _________________________________________________.
 You are responsible for all debts and liabilities sustained by the
business.
Liability is being legally responsible for something
 ________________________________________________________________________.
 Can be hard to get high quality employees.
Name:________________________
Date:________________
Class:_______________________
Partnership
Advantages:






two
You have _________
people working instead of just one.
Abilities and skills come from both sides
_________________________________________________.
Easy to establish.
Make sure to have a legal agreement (see next slide).
Easy to start up
_________________________________________________.
Have more than one person to lean on when it comes to making hard
decisions or management.
taxed the same as sole proprietor
 _________________________________________________.
Legal Document
With partnership, most people think everything will go smoothly at the
beginning of starting up a business, however “break-ups”, buy outs, new
so it is important to create a legal document
partners, failed businesses, etc., do happen, _________________________________
that states guidelines on the following information.
___________________________________________________________________________________.
“(1) each partner's rights and responsibilities, (2) the amount of capital each
partner is investing in the business, (3) the distribution of profits, (4) what
happens if a partner joins or leaves the business, and (5) how the assets are to be
divided if the business is discontinued. Things have a way of changing and
people forgetting over time, so it is essential that there be a signed document
that all abide by.”
http://economia.uniroma2.it/public/ba/files/Choosing_Your_Legal_Structure
.pdf
Disadvantages:
You have to split the income
 _________________________________________________.
 There is a lot you need to figure out before beginning a partnership (see
previous slide).
Responsible for you and your partner’s debt.
 _________________________________________________.
Corporation
Advantages:
 Easier to start up the business when many owners and many different
assets are brought in.
Name:________________________
Date:________________
Class:_______________________
 ____________________________________________________________________.
 _________________________________________________.
 Owners are not responsible for the business’s debts.
Disadvantages:
 ________________________________________________________________________________.
 Many employees in a corporation means you have a lot of overhead to
pay.
 ________________________________________________________________________________.
 Government keeps a very close eye on corporations.
LLC
 Limited Liability Company- is a type of business ownership where there
can be a single or multiple owners, like a partnership, but you have an
option to be taxed like a corporation.
 ________________________________________________________________________________.
 This way the owners protect their ________________________________________
________________________________________________________.
Profit Business
 ______________________________________________________________.
 They have owners and shareholders in their business.
 Any profit that is made by the business goes to the _____________________
__________________________________.
Non-Profit




_____________________________________.
Have no owners.
______________________________________________________.
Usually for a good cause
Name:________________________
Date:________________
Class:_______________________
Franchise
 Franchise is a business that was created for _____________________ an
_____________________ business, but opening it in a ______________________, and
where you are ____________________to sell goods and services a certain way.
 There is always a contract involved.
 The franchisee has to ___________the franchiser in order to open up the
business.
o The franchiser also gets to approve who opens their business in
different locations.
 ___________________________________________________________________________________
__________________________________________________________________________________.
Perks of a Franchise
 Consumers most likely already know about the original business so you
don’t have to market as strongly to get customers.
o ____________________________________________________________________________
____________________________________________________________________________
Note: There is NO guarantee that the business will succeed.
U.S. Small Business Administration
o If you are ready to start up your own business, our country has a great
_________________ with all the ______________________ you would need to get
started.
https://www.sba.gov/
o This site covers how to _______________________________________________________.