forms of ownership
Post on 06-Aug-2015
47 Views
Preview:
TRANSCRIPT
Forms of Business Ownership
Aysel MuradliFiruza SafarovaSama BelyaniNigar Zeynalova
2
Main forms of business ownership
Special forms of business ownership
Additional forms of business ownership
Agenda
3
Forms of Business Ownership
Main forms
Sole proprietorship Partnership Corporation
4
Definition A business that is
owned by one person. Most common in
retailing, service, and agriculture.
Sole Proprietorship
• Sole proprietorship
• Partnership
• Corporation
5
Advantages
• Ease of Start-up and Closure
• Pride of Ownership• Retention of All Profits• Flexibility of Being
Your Own Boss• No Special Taxes
Disadvantages
• Unlimited Liability• Lack of Continuity• Lack of Money• Limited Management
Skills• Difficulty in Hiring
Employees
Sole Proprietorship
• Sole proprietorship
• Partnership
• Corporation
6
Definition- A voluntary
association of two or more people to act as co-owners of business for profit
Partnership
• Sole proprietorship
• Partnership
• Corporation
7
General PartnershipBoth Partners are liable for everything the
business does Limited Partnership
One or more general partners manage the business, limited partners invest money
o Master limited partnershipOwned and managed like a corporation, but often
taxed like a partnership
Types of Partnership
• Sole proprietorship
• Partnership
• Corporation
8
Advantages
• Ease of Start-up• Availability of Capital
and Credit• Personal Interest• Combined Business
Skills and Knowledge• Retention of Profits• No Special Taxes
Disadvantages
• Unlimited Liability• Management
Disagreements• Lack of Continuity• Frozen Investment
Partnership
• Sole proprietorship
• Partnership
• Corporation
9
Definition- An artificial person created by law, with most of the legal rights of a real person.
1. Closed CorporationStock is owned by relatively few people and is not
sold to the general public.
2. Open CorporationStock can be bought and sold by any individual.
Corporation
• Partnership
• Corporation
• Special forms
10
Advantages
• Limited Liability• Ease of Raising Capital• Ease of Transfer of
Ownership• Perpetual Life• Specialized Management
Disadvantages
• Difficulty and Expense of Formation
• Government Regulation and Increased Paperwork
• Conflict within the Corporation
• Double Taxation• Lack of Secrecy
Corporation
• Partnership
• Corporation
• Special forms
11
S-corporation
LLC
Not-for-profit corporation
Special Forms of Business Ownership
12
S-corporation
Corporation(limited liability)
Partnership(tax)
S corporation
A corporation that is taxed as though it were a partnership.
• Main forms
• S-Corporation
• LLC
13
No more than 100 stockholders There can be no nonresident-alien
stockholders All stockholders must agree to the decision
to form S-corporation
S-corporation
Double taxation
Limited liability
Restriction on the number of owners/stockholder
• Main forms
• S-Corporation
• LLC
14
A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership
Limited-liability companies
Double taxation
Limited liability
Restriction on the number of owners/stockholder
• S-Corporation
• LLC
• Non profit
15
A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit.
Top 5 successful non profit organizations United Way Feed the Children Gifts in Kind Americares The Red Cross
Not-for profit
corporations
• LLC
• Non-profit corp.
• Additional forms
16
Cooperatives
Joint venture
Syndicates
Additional Forms of Business Ownership
17
A cooperative is an association of individuals or firms whose purpose is to perform some business function for its members.
In Azerbaijan, coorperatives are mainly formed in agriculture sector.
Coorperatives
• Special forms
• Coorperatives
• Joint Venture
18
Joint Venture
&
• Coorperatives
• Joint Venture
• Syndicates
A joint venture is an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time.
19
A syndicate is a temporary association of individuals or firms organized to per-form a specific task that requires a large amount of capital. Syndicates are used most commonly to underwrite large insurance policies, loans, and investments.
Syndicates
• Coorperatives
• Joint Venture
• Syndicates
20
Thank you for attention
top related