Types of Business Ownership

Types of Business Ownership

  • Submitted By: ahermina
  • Date Submitted: 10/28/2008 4:40 PM
  • Category: Business
  • Words: 381
  • Page: 2
  • Views: 1

Types of Business Ownership

a. A sole proprietorship is a business owned by one person
b. A partnership is a business owned and managed by a small group (often not more than two or three people)
c. A Corporation is a business owner by a number of people and operated under a written permission from the state in which it is located (certificate of incorporation)

Getting Started in a Business (Julie Example)

a. Has several jobs after school and during summer, got part time job at sporting goods store
b. After graduation, got full time job at sports store and took night classes in business administration
c. Needed more money so she got a loan for bank to start her own business

Managing a Successful Business

Planning: - Thinking, gathering, and analyzing info.
- Goals must be set for businesses and strategies devised for achieving them

Organizing: - Process of determining what work has to be done and who is to do each job

Staffing: - All activities involved in finding, selecting, hiring, training, appraising, and rewarding the business employees

Leading: - Requires good human relations and communication skills

Controlling: - Comparing what actually happens to what was planned

Expanding a Business

Partnership is formed:
- A written agreement that provided details of how their partnership would operate
- Discuss some of the legal responsibilities of becoming partners (before signing)

Corporation is created:
- Because bigger decisions come into play when corporations rise, more people could potentially help, but more money is required
- Board of Directors is a group w/ responsibility to guide operations of a corporation
Specialized Forms of Business Organizations

Franchise – a written contract granting permission to sell someone else’s product or service in a prescribed manner, over specific period of time in a specified territory

Cooperatives – owned...

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