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Unit 1 – Business Fundamentals. Chapter 2 – Forms of Business Ownership. FORMS OF BUSINESS OWNERSHIP. Let’s think about it. With a partner speculate about the advantages, disadvantages of each form of business ownership
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Unit 1 – Business Fundamentals Chapter 2 – Forms of Business Ownership
Let’s think about it • With a partner speculate about the advantages, disadvantages of each form of business ownership • What types of decisions must business people make before opening a business?
SOLE PROPRIETORSHIP • DEFINITION • A sole proprietorship is a business owned by one person. • The owner has unlimited liability – if the business does poorly the owner is responsible for all the losses. • Example: bicycle store owner, hot dog stand owner
PARTNERSHIPS • DEFINITION • A business with two or more partners who share the responsibilities and profits/losses. • Types of Partnerships: • General – most common – partners have unlimited liability • Limited – partners have limited liability • Examples: Some lawyers (e.g. divorce, civil, real estate) will form partnerships to serve a wider client base
PARTNERSHIPS • John D. Rockefeller once said. It Is Better To Have A Friendship Based On A Business Partnership Than A Partnership Based On A Friendship • What do you think? Explain the position you take.
CORPORATIONS • DEFINITION • A type of business owned by, but existing separately from, its shareholders. • 4 Types of Corporations: • 1) Private 3) Public • 2) Crown 4) Municipal • Examples: IBM, DELL, HP, APPLE, Microsoft
CORPORATIONS • Can be as small as one person or as large as a multinational • The ownership of large corporations is divided into many small parts, called shares or stock • An individual who owns shares is called a shareholder • Some corporations sell (trade) their stock on public exchanges such as TSX, Nasdaq.
Stock Market Rap • Stock Market Rap
CO-OPERATIVES • DEFINITION • A business owned by the people, or members, who buy the products or use the services that the business offers. • In Canada many co-operatives in the health care and child care sectors are not-for-profit • Examples: IGA (Independent Grocers Alliance), bank unions, The Co-operative Housing Federation of Canada
FRANCHISES • DEFINITION • In a franchise operation, one business, the FRANCHISER, licenses the rights to its business to another , the FRANCHISEE.
Types of Businesses Service Retail Manufacturing Non Profit
Answer the following... • What is E-Commerce? • What is a Joint Venture? • What is an International Franchise? • What is a Strategic Alliance? • What is a Merger? • What is Offshoring? • What is a Multinational Corporation?
