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Business-Ownership

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Business-Ownership Powered By Docstoc
					Quick Write
 Why would you want to go thorough the
  hassle of setting up a corporation?
AIM: What are the different
types of business
ownership?
Business Ownership Organizations
 Business Ownership can take three legal
  forms:
           Sole Proprietorship
           Partnership
           Corporation
Sole Proprietorship
 A sole proprietorship is a type of business
  entity which is owned and run by one
  individual.
 There is no legal distinction between the
  owner and the business.
 All profits and all losses accrue to the owner.
 The owner has unlimited liability.
Sole Proprietorship
 Advantages                    Disadvantages
    easy to start up              hard time raising
    subject to fewer               capital
     regulations relative to       The owner of the
     other types of                 business has unlimited
     businesses                     liability
    owner has full                The owner is
     autonomy with regard           responsible for the
     to business decisions          business's debts
    easy to discontinue
Partnership
 A partnership is the relationship existing
  between two or more persons who join to
  carry on a trade or business.
 Each person contributes money, property,
  labor or skill, and expects to share in the
  profits and losses of the business.
 In many countries, a partnership is also
  considered to be a legal entity, although
  different legal systems reach different
  conclusions on this point.
Corporation
 The most common form of business
  organization, and one which is chartered by a
  state and given many legal rights as an entity
  separate from its owners.
 The process of becoming a corporation,
  called incorporation, gives the company
  separate legal standing from its owners and
  protects those owners from being personally
  liable in the event that the company comes
  under legal fire.
Take out a sheet of paper… Put
your name and date on it…


    Choose 5 businesses from the following
                    list…


            PLEASE COLLECT THE PAPERS AT THE END OF
            CLASS AND PUT THEM IN MY MAILBOX…
What kind of business would you start?
a.   Car Repair          i.   Biotech Lab
b.   Photographic        j.   Bed & Breakfast
     Studio                   Inn
c.   Veterinary Clinic   k.   Architectural Firm
d.   Rock Group          l.   Medical Firm
e.   Coffee Shop         m.   Hair Salon
f.   Graphic Artist      n.   Tutoring Service
g.   Publishing          o.   Detective
     Enterprise
                                  STOP HERE – Give
h.   Computer software            Students a chance to pick
                                  5 businesses
What do your choices say about
you…
 If you selected b,d,f,g,or k you are
  probably artistic. Your interests are in the
  creative arts or working in a field that
  requires imagination and originality.
 If you selected e,j,l,m,or n you are
  probably social. You enjoy helping others
  and working with people.
 If you selected a,c,h,i,or o you are
  probably investigative. You like the
  challenge of making decisions and coming
  up with solutions.
 Were your selections from one category,
  or from a combination of categories?
 Look to see if you have a stronger interest
  in one area over another…
 Which type of daily activities would your
  perfect job entail???
                   Artistic
                   Social
                   Investigative