american business organizations
DESCRIPTION
advantages and disadvantages of various business types [proprietor, corp. ] small business adminTRANSCRIPT
Remember – in America, businesses are privatelyprivately owned, even those that are corporately owned. I.e. NOT owned by the government [the State]
Types of Business organizationTypes of Business organization Sole proprietorshipsSole proprietorships:: Unlimited possibilitiesUnlimited possibilities Unlimited liability Unlimited liability Nearly ¾ of U.S. Nearly ¾ of U.S.
businessesbusinesses About 5% of salesAbout 5% of sales Why?Why? The engine of U.S. The engine of U.S.
economy and jobs economy and jobs creationcreation
Small Bus. Admin.Small Bus. Admin.
Partnerships:Partnerships: Shared opportunities Shared opportunities
and liabilitiesand liabilities Combined expertiseCombined expertise Greater fund-raising Greater fund-raising
abilityability Complex structures Complex structures
and relationshipsand relationships General vs. Limited General vs. Limited
PartnersPartners DangerDanger: :
Friends/family relationsFriends/family relationsTrust factorTrust factor
Corporations: Corporate, public ownership; Organization much like an
individual under the lawComplex, hierarchical structurePart ownerships sold in shares of
the company or stockControl a function of # of shares
ownedMost effective at raising large
sums for startup or expansionLimited liability for ownersDividends are part of the profitsStock gains value as sales and
perception of value increase, but the opposite is also true…
Generate tremendous wealth – nearly ¾ of all sales in U.S.