Partnerships LG 2 OTHERS FORMS OF PARTNERSHIPS Master

Partnerships LG 2 OTHERS FORMS OF PARTNERSHIPS • Master Limited Partnership Master (LPM) - Consists of having a general partner who is responsible for running the partnership, and having individual investors who are limited partners. Looks much like a corporation, but is taxed like a partnership and thus avoids the corporate income tax. • Limited Liability Partnership (LLC) - Domestic LLCs may be managed by one or more managers or one or more members. Members are only responsible for losses, up to the amount they invest and those they supervise. A California LLC generally offers liability protection similar to that of a corporation but is taxed based on the number of members. 5 -14

Advantages of Corporations LG 3 HOW OWNERS AFFECT MANAGEMENT Owners / Stockholders (select Board of Directors) Board of Directors (hire Officers) Officers Managers (supervise (set corporate employees) objectives and select managers) Employees 5 -21

Advantages of Corporations LG 3 The BIG BOYS of BUSINESS 1) Walmart 2) Kroger 3) Walgreens 4) Home Depot 5) Target About. Com - Retail Industry - 2013 5 -22

PRIVACY PLEASE Advantages of Corporations LG 3 The 10 Largest Private Corporations in the U. S. COMPANY STATE INDUSTRY Cargill MN Farming Koch Industries KS Chemicals Bechtel CA Construction Mars VA Food, Drink & Tobacco Pricewaterhouse. Coopers NY Business Services & Supplies Pilot Flying J TN Convenience Stores & Gas Publix Super Marts FL Food Markets Love’s Travel Stops & Country Stores OK Convenience Stores & Gas Ernst & Young NY Business Services & Supplies Reyes Holding IL Food, Drink & Tobacco www. forbes. com 2014 5 -23

Advantages of Corporations LG 3 EVEN the BIG GUYS MAKE MISTAKES COMPANY BAD MOVE Apple Maps Launched in September 2013, was a disaster, giving terrible directions, missing railway stations, and Dublin Ireland was given a new airport. Atari Amount of Surplus from a bad game was so big, that it had to be buried in a New Mexican landfill. Blockbuster Passed on a partnership with Netflix, and went bankrupt. Hostess CEO cuts everyone’s salary, but his own, and goes bankrupt. Coca Cola New Coca only lasted 77 days due to 1500 complaint calls a day. Shoebox Cards Stuff like, don't mention breasts on cards for 13 -year-old girls. And don't imply that big breasts will get you diamonds from rich boyfriends. Denny’s John Metz, a 40 -store manager, promised to add a 5% surcharge to Obamacare customer bills to help pay for Obamacare. He even suggested customers Surcharge reduce tips to their servers in order to pay surcharge. This created a mess for Denny's and Metz. Customer backlash was intense, and other franchisees not involved with issue reported sales drop. Metz apologized regretting his statement after being spoken with by Denny’s CEO. 5 -25

Individuals Can Inorporate OLDIES BUT GOODIES American’s Oldest Corporations LG 3 COMPANY YEAR STARTED INDUSTRY Harvard Corporation 1636 Education J. E. Rhoads & Sons Covenant Life Ins. Philadelphia Insurance Dexter D. Landreth Seeds 1702 1717 1752 Conveyor Belts Insurance 1767 1784 Adhesives & Coatings Seeds Bank of New York 1784 Banking 5 -27

Advantages of Corporations MAKE WAY for the NEWBE Top New Franchises LG 3 Rank Company Start-Up Costs 1 Anytime Fitness $56. 29 K - $353. 89 K 2 Hampton Hotels $3. 7 M - $13. 5 M 3 Subway $85. 69 K - $262. 85 K 4 Supercuts $108. 75 K - $203. 6 K 5 Jimmy John’s Gourmet Sandwiches $300. 5 K - $489. 5 K 6 7 -Eleven, Inc. $30. 79 K – $1. 63 M 7 Servpro $134. 8 K - $183. 44 k 8 Denny’s $1. 17 M - $2. 4 M 9 Pizza Hut $297 K - $2. 1 M 10 Dunkin’ Donuts $294 K - $1. 51 M Entrepreneur’s Franchise 500 © 2014 5 -39

HOME SWEET HOME Advantages of Corporations LG 3 Top Home Based Franchises Rank Business Type Start-Up Costs 1 Security & Commodity Broker Phone, Computer, Internet & Registration Fee: $5 K 2 Software Publishers Software Designing Knowledge, Phone, Computer & Internet 3 Artists, Writers & Performers Head Shots, Portfolio & Agent Fees 4 Insurance Agents & Brokers Insurance Trained, Registered in State, Phone, Computer & Internet 5 Specialized Design Services (Graphics, Interior & Clothing) Computer, Software/3 -D/Interiors, Printer, Phone & Internet 6 Consulting Services Specialty Training, Phone, Computer, Printer & Internet 7 Personal & Household Goods Repair & Maintenance Specialty Training, Tools ($5 K-$15 K), Vehicle, Phone, Licensing & Insurance 8 Real Estate Agents & Brokers Specialty Training, Licensing, Insurance, Phone, Computer, Printer & Internet 9 Electronic & Precision Equipment Repair & Maintenance Training with PC & MAC’s, Tools, Manuals, Computer, Internet & Software 10 Grant Making & Giving Services Computer, Software, Event Planner, Internet & Printer www. forbes. com © 2014 5 -46

HIGH FLYERS Advantages of Corporations 10 Top Franchises LG 3 1 Hampton Hotels 2 Subway 3 Jiffy Lube Int’l, Inc. 4 7 -Eleven, Inc. 5 Supercuts 6 Anytime Fitness 7 Servpro 8 Denny’s, Inc. 9 Mc. Donald’s 10 Pizza Hut, Inc. Entrepenurers. com © 2014 5 -51