Fina

Sole Proprietorship

A business owned by one person

Corporation

A business that is owned by many investors.

Partnership

a business owned by two or more people

acquisition

one of the company's purchase of the property and obligations of another company

advantages of a franchise

-Management training and support -Standardized quality of products -National advertising programs -Financial assistance -still some level of independence

Disadvantages of corporation

-double taxation -cost of setup and report filing

General Partnership

A partnership in which all owners share in operating the business and in assuming liability for the business's debts.

limited partnership

A partnership with one or more general partners and one or more limited partners.

the main disadvantage

Isolation long hours

Advantages of a corporations

Limited liability Ability to raise more money for investment Size Perpetual life Ease of ownership change Ease of attracting talented employees Separation of ownership from management

Home-Based Franchises Advantages:

Relief from commuting stress Extra family time Low overhead expenses

vertical merger

The joining of two companies in different stages of related businesses.

Disadvantages of Partnership

Unlimited liability Management disagreements Lack of continuity Frozen investment

Advantages of Partnership

ability to share work, ability to share risks

franchise agreement

an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory

Disadvantages of Franchising

costs, lack of control, negative halo effect, growth challenges, restrictions on sale, poor execution

Advantages of Sole Proprietorship

ease of formation, retention of control, pride of ownership, retention of profits, possible tax advantage

Disadvantages of Sole Proprietorship

unlimited liability, lack of continuity, lack of money, limited management skills, difficulty in hiring employees

conglomerate merger

the joining of firms in completely unrelated industries

horizontal merger

the joining of two firms in the same industry

merger

when two or more companies join to form a single firm