Business Ownership

Advantages of franchise

-Assistance from parent company. -Name recognition. -Shared advertising expenses. (McDonalds)

Business ownership includes:

-Determining which type of business fits the needs. -Securing finance. -Name the company. -Protecting business ideas. -Location. -Licenses and permits.

Disadvantages of corporation

-Difficult to build. -Can be complex, especially accounting. -Has more analyzed governmental regulations. -Can increase profits on corporate profits and shareholders. -Requires more time and money.

Disadvantages of partnership

-Disagreements between partners. -Actions of one legally bound to other. -If one dies, the partnership dissolves and a new one must be made which takes time and money. -Must contend the fact they are working under unlimited liability.

Advantages of partnership

-Easy start up. -Combines skills of two or more people. -Each partner has a voice. -More money available for operation or expansion. -Taxed and monitored less than a corporation.

Advantages of corporation

-Easy to raise wealth and assets. -Easier for people to leave and enter. -Limited liability for each owner. -Each department can easily be managed by a pro in the area.

Disadvantages of sole proprietorship

-Harder to raise money to expand the business since the company's shares are not sold. -Unlimited liability: complete business responsibility in business debts and losses- can lose portion of personal assets. -High start up cost. -Owner can have limited skills.

Disadvantages of franchise

-High purchase fee. -Percentage of sales or yearly fee paid to parent company. -Must follow parent company business structure.

Partnership

-Legal agreement between 2 or more people responsible for a business. -Least common form.

Corporation

-Most complicated form. -A separate legal entity. -Forms boards to act as governing bodies. (Directors and officers) -Ownerships can be shares of stocks. -Is subject to many governmental regulations.

Sole proprietorship

-Owned and operated by one individual. -Most common form.

Sole proprietorship requirements

-Provide funds, resources, and management responsibility to start and run a business.

Advantages of sole proprietorship

-Relatively simple with less taxes and government regulations. -Owner entitled to all profits. -Relatively easy to start. -Easy to maintain business confidentiality.

Types of business ownership

-Sole proprietorship. -Partnership. -Corporation. -Franchise.

Ways to become a business owner

-Start a new business. -Purchase a franchise. -Purchasing an existing business (non-franchise). -Taking over family business.

Franchise

-The right or license to see a company's product or service at a designated location. -Includes franchiser and franchise.

2 forms of partnership

General partnership and limited partnership.

Limited partnership

Have unequal share and liability in business; responsible only for money they invested.

General partnership

Share equal liability in business profits and losses.

Business ownership

The individual or groups which own a business and it's legal entities.