BUSINESS OWNERSHIP – PART IIINTRODUCTION TO BUSINESS & MARKETING

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

TOP 10 FRANCHISESWEBQUEST

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