principles of business, marketing, and finance forms of business ownership copyright © texas...
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Principles of Business, Marketing, and Finance
Forms of Business Ownership
Copyright © Texas Education Agency, 2011. All rights reserved.
Changing Employment Trends
• 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. 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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Service BusinessCarry out activities that are consumed by its
customers
IntermediariesSell goods and services
ProducersCreate products and services used by other individuals and businesses
Three Major Categories of Businesses
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Forms of Business Ownership
• 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 Ownership
• 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 Ownership
• 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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Limited Liability Partnership & Company
Joint Venture
S-Corporation
Nonprofit
Corporation
Franchise
Cooperative
Other Forms of Business Ownership
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