sole proprietorship a business owned and run by one person makes up about 80% of all businesses
TRANSCRIPT
Advantages
Easy to get started Relative ease in managing
Quick decision making Doesn’t have to share any profits Does not have to pay business income
tax
Major Weaknesses
Unlimited LiabilityOwner is personally responsible for all
losses & debts Difficulty in raising financial capital
(money) A minimum # of employees & minimum
inventory
Sole ProprietorshipsAdvantages Disadvantages
Easy to open or close Limited Funds
Few Regulations Limited Life
Freedom and control Unlimited Liability
Owner keeps profits
Major Disadvantages
Each partner is responsible for the other’s actions
It has limited life Potential conflict between partners
Corporations
A business organization recognized by laws as a separate legal entity
Charter
You are creating a legal entity separate from the people who own it! It can sue and be sued!
Advantages
Ease of raising money The corporations are fully responsible
for its debts & obligations The business continues to exist even
when ownership changes Selling & buying stock
http://money.cnn.com/2006/04/07/pf/bestjobs_moneymag_perks/index.htm
http://www.youtube.com/watch?v=EjTZF19jBs8
http://www.nbcnews.com/business/best-company-work-2014-2D11732356
http://www.youtube.com/watch?v=j6h-gm01Fb0
Awesome Companies to Work For
Business Combinations
Two reasons why businesses merge: The desire of a business to become
larger Efficiency
Economies of Scale
Cost of production falls as the business gets larger
Buy in bulk Advertising campaigns Eliminate competition Research & development
Pros & Cons
Increase tax revenue & creating jobs
Outsourcing jobs
http://www.cbsnews.com/video/watch/?id=4312234n
http://www.cbsnews.com/video/watch/?id=4312039n
DUBAI INC.