TYPES OF BUSINESSES By: Josh AppleJordan Guye

ShaQuinta Reed

Proprietorships

Examples Beauty salons Cleaners Pizza restaurants

Dr. Roslyn Crisp and associates

Owned by one person (Sole Proprietorship)

Unlimited liability- complete legal responsible for all debts and damages

Proprietorships Cont.

Advantages- Owner gets the

final say Pay no corporate

income tax

Disadvantages- Unlimited liability Have difficulty

finding qualified employers

Difficult to raise financial capital

Corporate income tax- tax on the money that corporations make

Partnerships

Partnerships- A business that two or more people own to operate

Examples Baskin Robins Apple (when it was started) Ben and Jerry's

Partnerships Cont.

ADVANTAGES DISADVANTAGES

Pride of sharing ownership in a business

Multiple owners so it is easier to raise money than in proprietorships

Pay no corporate income tax

Larger in size than proprietorships

Legal structure is complex (when a partner is added or taken away)

Owners have a unlimited liability (if other owners could not pay all damages then it would go to you)

Corporations

Corporations- an organized business recognized by law that has many rights and responsibilities of an individual

Structure- Charter, Stockholders Charter- A legal document from the

government that allows you to become a corporation

Stockholder- A person who owned shares in a company and gets part of the company’s profits and the right to vote how the company is controlled

Corporations Cont.

ADVANTAGES DISADVANTAGES

Can easily raise money because of stocks

With being able to raise money easily the company can grow to be huge

Expensive and complex to set up

Business owners have very little to say about the management of the business

Under more government regulation than proprietorships and partnerships

http://bits.blogs.nytimes.com/2013/04/26/for-zuckerberg-a-big-payout-from-facebook-stock/?ref=facebookinc

http://www.youtube.com/watch?v=TjeheC0BSAk

Works Cited

Sengupta, Somini. For Zuckerberg, a Big Payout From Facebook Stock. N.p., 26 Apr. 2013. Web. 29 Apr. 2013.

"What Is a Corporation?" YouTube. YouTube, 03 Mar. 2013. Web. 30 Apr. 2013.

Remy, Richard C., John J. Patrick, David C. Saffell, Gary E. Clayton, and Dinah Zike. Civics Today: Citizenship,

Economics, & You. New York, NY: Glencoe/McGraw-Hill, 2008. Print.

N.d. Photograph. Http://www.earthlyissues.com/images/steve_jobs_apple.jpg. Web.

Http://celdf.org/img/original/Matt%20Wuerker%20-%20Corporate%20Court%20Protection.jpg. N.p., n.d. Web.