FRI. DECEMBER 12, 2014Objectives

47 – Identify the four types of businesses.

48 – Compare major types of business ownership.

CLASS AGENDA1) BRO Time- Turn in your Wage and Hour Sheet

Get out your franchising selecting two new franchises from last class

2) Business Ownership – Part IIFinish PowerPoint & Notes

3) Computer Lab Franchise Write-Up

ClosureWhat is difficult about selecting resources for your business?

HomeworkNone

BUSINESS OWNERSHIP – PART IIMARKETING CO-OP

REVIEW

Last Class…

Four Kinds of Businesses

Types of Business Ownership

Did You Know?

Small businesses provide 55% of jobs.

There are ½ million businesses started each year.

Only 15 – 20 percent of all businesses in the U.S. are corporations.

Corporations are responsible for 80% of all business conducted in the U.S.

TASK 48COMPARE MAJOR TYPES OF BUSINESS OWNERSHIP.

TYPES OF BUSINESS OWNERSHIP

Limited Liability Company

Limited Liability Partnership

S-Corporation

Franchise

LIMITED LIABILITY COMPANY (LLC)

Relatively new form of business ownership

Hybrid between a partnership and a corporation

Limited Liability

No double taxation

LIMITED LIABILITY PARTNERSHIP (LLP)

Different kind of hybrid between a partnership and a corporation!

One partner is not responsible (liable) for another partner’s misconduct or negligence

S-CORPORATION

Hybrid between a partnership and a corporation

Taxed like a small business

Up to 35 shareholders

EXPLAIN THE DIFFERENCE BETWEEN LIMITED LIABILITY & UNLIMITED LIABILITY.THINK ABOUT IT!

FRANCHISE

Definition

Legal agreement to use the name and sell the products of an established parent company

Assigned designated geographic area

Annual fee plus royalty fees

FRANCHISE

Advantages

Using a tested management system

Receive extensive training

Guaranteed a geographic area

Widely recognized brand

Disadvantages

High initial start-up cost

Strict rules & regulations

Judged by the performance of peers

FRANCHISING YOUR BUSINESS IN ASHBURNPARTNER ACTIVITY IN THE LAB

SHARK TANK MARKETING CO-OP : OPENING YOUR FRANCHISE

Franchise Activity: Partners from Last Class You and your partner will create a short presentation with a hook and pitch similar to Shark Tank!

Objective: Pitching to the ‘Sharks’ to Open Your Franchise Over the Others

What You Need to Include in Your Pitch: Intro and Hook to Sharks

Type of Franchise and Brief Description

Major Product/Service

Location Site in Loudoun (where would you propose to put the Franchise)? –

Market Analysis: Target Market, Demographics, Geographics, Psychographics

Financing: Start-up Cost

Brief Narrative Describing Your Planned Growth of the Proposed Business and How Much Capital Investment You’d Need to Open Your Franchise