HBM 131 1st Edition Lecture 25 Outline of Last Lecture I Presentation from Boeing Event Coordinator Outline of Current Lecture I Group Presentations A Proprietorships B Ownerships Current Lecture I Group Presentations A Sole Proprietorship 1 Business entity can establish instantly only one owner 2 Both are personally liable both benefit B Partnership 1 Shared by more than 2 people 2 Equally share the profits and liabilities 3 Advantages easy to run and inexpensive pooled resources 4 Disadvantages retain full liability among the owners C Limited Liability Company 1 Hybrid IRS loophole articles or organization liability from creditors corporations are simple cheap and flexible 2 Advantages legal protection for personal assets Bank accounts can be protected of assets only one filling term for taxes 3 Corporations best used for large scale companies complicated can be divided up to owners as shares of stock II Ownership A B C D 1 2 3 4 5 Definition legal right of possession Benefits more flexible lifestyle most money creation help people Disadvantages financial risk stress time commitment responsibility 5 main forms of business ownership Sole Proprietorship General Partnership Limited Partnership Forming a corporation considered a separate entity Limited Liability Company provides the limited liability provide by corporations with out all the restrictions and taxes E What makes a bad owner 1 No incentives 2 Doesn t care about employees F Good owner 1 Leader 2 Organized 3 Visionary 4 Outgoing
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