Sole Proprietorships Partnerships and Corporations Ch 3 Sec

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Sole Proprietorships, Partnerships, and Corporations (Ch. 3, Sec. 1) Oh My!

Sole Proprietorships, Partnerships, and Corporations (Ch. 3, Sec. 1) Oh My!

Sole Proprietorships ¡ ¡ Business owned by one person. Advantage: Owner receives all the

Sole Proprietorships ¡ ¡ Business owned by one person. Advantage: Owner receives all the profit and has full control of business. Disadvantage: Owner is personally responsible for debts and damages. Personal assets can be seized to pay off debts.

Partnerships Business owned and operated by 2 or more people. ¡ Partners sign an

Partnerships Business owned and operated by 2 or more people. ¡ Partners sign an agreement which spells out their duties and division of profit and assets at the end of a partnership. ¡

Partnerships ¡ Advantage: Share control and profits/losses. ¡ Disadvantage: Partners have unlimited liability.

Partnerships ¡ Advantage: Share control and profits/losses. ¡ Disadvantage: Partners have unlimited liability.

Types of Partners: ¡ ¡ ¡ Limited Partners: Business where partners are not equal.

Types of Partners: ¡ ¡ ¡ Limited Partners: Business where partners are not equal. Have no liability beyond initial investment. General Partners: are fully responsible for debts of company. Joint Venture: A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task (a temporary agreement) Joint Venture b/t Dodge & RB ; )

Corporations Organization owned by many people but treated by law as if it were

Corporations Organization owned by many people but treated by law as if it were a person. ¡ Can own property, pay taxes, make contracts, sue and be sued. ¡

Formation of a Corporation ¡ Advantage: Stockholders have limited liability, they are not personally

Formation of a Corporation ¡ Advantage: Stockholders have limited liability, they are not personally responsible, and only the business loses money.

Formation of a Corporation ¡ ¡ Disadvantage: corporations pay more taxes than other forms

Formation of a Corporation ¡ ¡ Disadvantage: corporations pay more taxes than other forms of business organizations. Need for financial capital. Wanting financial backers without having a hand in the business. Raises money by selling stocks or bonds.

Project- Day 2 Continue to work on Part I of the business plan from

Project- Day 2 Continue to work on Part I of the business plan from yesterday. ¡ You can also begin to work on question one on Part II of the Business Plan. ¡ Start brainstorming the razzledazzle as you go (company name, logo? ). Just don’t get too off topic! ¡ Any Switches for SAFE, come see me! ¡