gabriel-barry
Uploaded by
8 SLIDES
216 VUES
80LIKES

Understanding Different Types of Businesses: Sole Proprietorship, Partnership, Corporation, Nonprofit

DESCRIPTION

This chapter explores the four primary types of businesses: Sole Proprietorships, Partnerships, Corporations, and Nonprofit Organizations. It discusses the characteristics, advantages, and disadvantages of each type. Sole Proprietorships are predominantly owned by individuals and constitute approximately 75% of U.S. businesses. Partnerships involve shared ownership among multiple people, often pooling various skills. Corporations are larger entities owned by investors through stocks. Finally, Nonprofit Organizations operate similarly to corporations but focus on missions rather than profits.

1 / 8

Télécharger la présentation

Understanding Different Types of Businesses: Sole Proprietorship, Partnership, Corporation, Nonprofit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 18.3 Types of Businesses

  2. Types of Businesses • Sole Proprietorship • Partnership • Corporation • Nonprofit Organization

  3. Sole Proprietorship • Business that one person or couple owns • About 75% of businesses in the US are sole proprietorships • Also known as “Small businesses” • Gas stations, barber shops, grocery stores, etc. • Pros: you keep all the money; you’re your own boss • Cons: you take all the risks; sink or swim

  4. Partnership • Business owned by two or more people, often a family • Law offices are often partnerships • People have different skills and tasks, and they’re pooled together • Sheetz is an example of a partnership

  5. Corporation • Large businesses owned by many people • Need to be incorporated,or granted permission from the state • Instead of buying the stuff themselves, corporations look for investors, who agree to buy the company for a price (STOCKS) • The stocks help start up the company and the risk-takers get some of the profit made

  6. Types of Stock • Common stock – bought by ordinary people • When the company makes profit, you get a yearly check of the profit called a dividend • Dividend stock – you get a dividend whether the company makes a profit or not; these people get paid before the “common stockholders”

  7. Advantages of Corporations • A lot of people take risks; therefore, if the company fails, one person isn’t stuck with all of the loss • The larger and more-established the corporation, the safer the risk • Very bureaucratic and organized - how can this be a con, too?

  8. Nonprofit Organizations • Organizations that make money and have a similar business structure to partnerships and corporations • They make no profit, however. • Where’s the “profit” go to? • Role of tax exemptions

More Related