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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?
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.