business ownership 8.1
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Business Ownership
Chapter 8 Section 1
Types of Ownership
Do you or anyone you know own a company?
What kind of company is it?
Types of ownership
Sole proprietorship Partnership Corporations Subchapter S corporations Limited Liability companies (LLC) Multinational corporations
Sole Proprietorship
A type of business ownership in which one person owns the business. Examples:
Dairyhaus ???
Sole Proprietorship
Advantages: You are your own boss Limited paperwork/regulations You get profits
Disadvantages: Unlimited liability Limited capital Governments differ Global competition
Partnership
A type of business in which two or more people own the business. Examples:
Law firms Doctors offices ???
Partnership
Advantages: Partners bring different skills More capital
Disadvantages: Breaking up is hard to do Partners are fully liable Partnerships overseas are difficult
Corporations
A type of business ownership in which many people, whom the law treats as one person, own the business.
Corporations
Closely held: private corporation in which shares are owned by a small group. Example: banks
Publicly held: corporation in which shares are sold openly in stock markets. Microsoft
Corporations
Characteristics: Board of directors/officers Stockholders elect board Stockholders make money
Dividends: a % of the profit Increase stock value
Corporations
Advantages: Limited liability Business continues to exist no matter who owns
stock Disadvantages:
Costly to start up Paperwork Takeover possibilities Double taxation
Subchapter S corporations
A corporation that is taxed like a partnership
The business owners pay taxes from personal earnings. Examples:
restaurants
Limited Liability Company
A company whose managers and owners enjoy limited liability and some tax benefits
Multinational Corporations
An organization that operates in more than one country. MNC’s aka: global, transnational or worldwide companies or corporations Examples:
McDonalds Burger King
MNC’s
The original place of business for a company is the home country
When the company builds operations in another country it becomes an MNC
The foreign country is the host country Larger role in the world economy than
simply an exporter
MNC’s continued
Successful MNC’s Create universal products Design HR policies to include global
workers Good guests in all countries Economic and political power
Citations
Donald Baack, Ph.D., International Business. The McGraw-Hill Companies, Woodland Hills, California, 2008
Lindenmuth, Janet. Law Library Books. Digital image. Flickr. Yahoo, 12 Jan. 2012. Web. 25 June 2012. <http://www.flickr.com/photos/j3net/6685194971/>.
401K 2012. Tax. Digital image. Flickr. Yahoo, 9 Nov. 2010. Web. 25 June 2012. <http://www.flickr.com/photos/68751915@N05/6355404323/>.
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