HBM 131 1st Edition Lecture 25Outline of Last Lecture:I. Presentation from Boeing Event Coordinator Outline of Current Lecture:I. Group PresentationsA. Proprietorships B. OwnershipsCurrent Lecture:I. Group PresentationsA. Sole Proprietorship1. Business entity – can establish instantly; only one owner 2. Both are personally liable, both benefit B. Partnership 1. Shared by more than 2 people2. Equally share the profits and liabilities3. Advantages- easy to run and inexpensive, pooled resources4. Disadvantages- retain full liability among the ownersC. Limited Liability Company1. 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 stockII. Ownership A. Definition- legal right of possession B. Benefits- more flexible lifestyle, most money, creation, help people C. Disadvantages- financial risk, stress, time commitment, responsibilityD. 5 main forms of business ownership1. Sole Proprietorship 2. General Partnership3. Limited Partnership4. Forming a corporation-considered a separate entity 5. Limited Liability Company- provides the limited liability provide by corporations with out all the restrictions and taxesE. What makes a bad owner1. No incentives2. Doesn’t care about employees F. Good owner1. Leader2. Organized3. Visionary4.
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