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BUSINESS OWNERSHIP – PART IIINTRODUCTION TO BUSINESS & MARKETING
REVIEW
Last Class…
Four Kinds of Businesses
Types of Business Ownership
Did You Know?
Small businesses provide 55% of jobs.
There are ½ million businesses started
each year.
Only 15 – 20 percent of all businesses
in the U.S. are corporations.
Corporations are responsible for 80%
of all business conducted in the U.S.
TASK 48COMPARE MAJOR TYPES OF BUSINESS OWNERSHIP.
TYPES OF BUSINESS OWNERSHIP
Limited Liability Company
Limited Liability Partnership
S-Corporation
Franchise
LIMITED LIABILITY COMPANY (LLC)
Relatively new form of business
ownership
Hybrid between a partnership
and a corporation
Limited Liability
No double taxation
LIMITED LIABILITY PARTNERSHIP (LLP)
Different kind of hybrid
between a partnership and a
corporation!
One partner is not responsible
(liable) for another partner’s
misconduct or negligence
S-CORPORATION
Hybrid between a
partnership and a
corporation
Taxed like a small business
Up to 35 shareholders
EXPLAIN THE DIFFERENCE BETWEEN LIMITED
LIABILITY & UNLIMITED LIABILITY.THINK ABOUT IT!
FRANCHISE
Definition
Legal agreement to use the name and sell the products of an established parent company
Assigned designated geographic area
Annual fee plus royalty fees
FRANCHISE
Advantages
Using a tested management system
Receive extensive training
Guaranteed a geographic area
Widely recognized brand
Disadvantages
High initial start-up cost
Strict rules & regulations
Judged by the performance of
peers
TOP 10 FRANCHISESWEBQUEST
LEMONADE STANDONLINE GAME & WORKSHEET