Bell Work Objective: Objective: Explain the characteristics of the different types of businesses Explain the characteristics of the different types of.

Bell WorkBell Work

Objective:Objective: Explain the characteristics of the different types of Explain the characteristics of the different types of

businessesbusinesses Bell Question:Bell Question:

What is an example of a business that you your What is an example of a business that you your self could own and operate right now?self could own and operate right now?

Types of BusinessesTypes of Businesses

Sole Proprietorships:Sole Proprietorships:

Business owned and managed by a single Business owned and managed by a single individualindividual

AdvantagesAdvantages Simple to establishSimple to establish Sole receiver of Sole receiver of

ProfitProfit Full Control Full Control Easy to discontinueEasy to discontinue..

DisadvantagesDisadvantages Unlimited Personal Unlimited Personal

LiabilityLiability Limited resourcesLimited resources Lack of PermanenceLack of Permanence

Partnership- Partnership- Business with 2 or moreBusiness with 2 or more

owners owners

AdvantagesAdvantages Shared Decision Shared Decision

makingmaking Larger Pool of Larger Pool of

CapitalCapital Shared responsibilityShared responsibility

DisadvantagesDisadvantages Potential for conflictPotential for conflict Have to split the Have to split the

profitprofit

Corporations: A legal entity owned by Corporations: A legal entity owned by individual stockholdersindividual stockholders

AdvantagesAdvantages Limited liabilityLimited liability Transferable Transferable

ownershipownership Ability for capitalAbility for capital Potential for growth Potential for growth Long lifeLong life

DisadvantagesDisadvantages Expensive to start Expensive to start

upup Double taxationDouble taxation Loss of controlLoss of control More regulationsMore regulations

Business Franchises- a semi-independent business Business Franchises- a semi-independent business that pays fees to a parent company to sell a certain that pays fees to a parent company to sell a certain

product or service.product or service.

AdvantagesAdvantages Management Management

training/supporttraining/support Standardized Standardized

qualityquality National Ad National Ad

campaignscampaigns Buying power-bulkBuying power-bulk

DisadvantagesDisadvantages High franchise feesHigh franchise fees Strict operating Strict operating

standardsstandards Limited product Limited product

lineline

Other OrganizationsOther Organizations

Cooperative Organization-Cooperative Organization- owned and operated by owned and operated by a group of individuals for shared benefita group of individuals for shared benefit

Nonprofit Organizations-Nonprofit Organizations- are in the business of are in the business of benefiting society but not for profit. Ex: American benefiting society but not for profit. Ex: American Red Cross, YMCA, KIVARed Cross, YMCA, KIVA

Professional Organizations-Professional Organizations- works to improve the works to improve the image, working conditions and skill levels of people.image, working conditions and skill levels of people.

Ticket Out:Ticket Out:

Which of the types of businesses do you think Which of the types of businesses do you think you would rather participate in? Why? you would rather participate in? Why?