Mr. Kallusingh. A business owned and operated by one person They are typically small in size and usually require few qualifications Advantages-

Mr. Kallusingh

A business owned and operated by one person They are typically small in size and usually

require few qualifications Advantages- easy start up, easy management,

controls all profits, business is exempt from taxes, your own boss, ease of leaving

Disadvantages- unlimited liability, raising financial capital, having enough capital for inventory and labor, limited managerial experience, finding qualified employees, limited life

Make up 90 percent of all sales in America Is a separate legal entity that can buy/sell

property, enter contracts, and be sued Has shareholders that invest in the business Advantages- easily raise capital, professional

management, limited liability, unlimited life Disadvantages- difficulty of receiving a

charter, owners lake of control in day-to-day operations, double taxation, more government regulation

General- all partners are involved day-to-day activities or Limited- at least one partner is not involved in day-to-day activities

Easy to start, can have paperwork to decide the division of power

Advantages- ease of establishment, maybe ease of management due to multiple owners, single taxation, easier to gain financial capital, easier management due to size, can attract employees due to specialization

Disadvantages- liable for partner decisions, limited life, conflict amongst partners, all people are liable for debts

Blends parts of corporations and partnerships Has the limited liability of corps and single tax

of partnerships Well suited for single owners that do not want

to have all the liability Advantages- tax choice, less paperwork than a

corporation, do not have to deal with investors Disadvantages- lack of government protection,

more difficult to raise capital, management issues

Mergers take place to grow faster, become more efficient, make a better product, eliminate a rival, or change its image

Horizontal Merger- two companies that make a similar product join forces

Vertical Merger- two companies that are involved in different steps of manufacturing or marketing merge; automaker and tire company

Conglomerate- firm with at least four different businesses making unrelated products

Non-Profit Organization- is a business that tries to promote the interest of its members instead of turning a profit

Multi-National Organization- corporation that has manufacturing or service operations in different countries

Franchises- the practice of one firm using another’s successful business model

Bond is a written promise to repay the amount borrowed at a later date with interest

Stock is like buying a portion of a company Common Stock- people owning this can

vote on board of directors Preferred Stock- people owning this can

not vote on board of directors, but get paid dividends first