02 forms busownership
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Principles of Business, Marketing, and Principles of Business, Marketing, and FinanceFinanceLesson TwoLesson Two
Forms of Business OwnershipForms of Business Ownership
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Changing Employment Changing Employment TrendsTrends
• New jobs evolve while old jobs disappear.
• The U.S. has an aging population.
• Minorities are making up a larger percentage of the workforce.
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Businesses in the U.S. EconomyBusinesses in the U.S. Economy
• Employ millions of Americans
• Compensate owners and investors
• Pay taxes to federal, state, and local governments
• Make and distribute products and services needed by consumers, government, and businesses
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Three Major Categories of Businesses
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Forms of Business Forms of Business OwnershipOwnership
• Sole Proprietorship– Individuals who want to
work and make decisions independently
– Little government regulation– Great risk for the owner
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Forms of Business Forms of Business OwnershipOwnership
• Partnership– The partnership is owned and controlled
by two or more people.– Partners share an idea for a business.– Partners want to cooperate in managing
and investing, and want to share the risks and rewards of the business.
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Forms of Business Forms of Business OwnershipOwnership
• Corporation– Separate legal entity owned by one or more
shareholders and managed by a board of directors• More difficult to form• Subject to more regulations• Limited liability for investors
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Other Forms of Business Ownership
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