ARE YOU READY TO BEGIN CHAPTER 2?

1. PROFESSIONALISM: HANDSHAKE What is a proper handshake?

Trump handshakes

Howcast: proper handshake

Do you know enough about these already? 2. FORMS OF OWNERSHIP Do you know enough about these already?

Sole Proprietorship: Characteristics There is one owner. Advantages: The owner gets to keep all of the profit. The decision-making process is fast. Disadvantages: The owner has many responsibilities. Unlimited Liability: if the business loses money or goes bankrupt, the owner loses money too.

Sole Proprietorship: Characteristics There is one owner. Owner = proprietor. Advantages: The owner gets to keep all of the profit. The decision-making process is fast. Disadvantages: The owner has many responsibilities. Unlimited Liability: if the business loses money or goes bankrupt, the owner loses money too.

Sole Proprietorship: Advantages The owner gets to keep all of the profit. The decision-making process is fast. Disadvantages: The owner has many responsibilities. Unlimited Liability: if the business loses money or goes bankrupt, the owner loses money too.

Sole Proprietorship: Disadvantages The owner has many responsibilities. Unlimited Liability: if the business loses money or goes bankrupt, the owner loses money too.

Partnership: Characteristics There are two or more owners.

Partnership: Advantages The owners can share the responsibilities. The owners can also contribute their strengths to the business.

Partnership: Disadvantages The profit is shared with other owners. There are two types: unlimited liability partnership and limited liability partnership. In unlimited, the partners share the losses. In limited, the partners are responsible for paying back ONLY what they have invested originally. The decision-making process is LONG.

Corporation: Characteristics The owner and the business ARE SEPARATE entities. In a large corporation, the business can’t be funded by one or two people, so the business shared in small parts (or SHARES) shareholders = owners board of directors = representatives

Corporation: Advantages Limited liability!!!! Even if the business fails, the owner is not responsible for its losses. Transfer of ownership is VERY SIMPLE

Corporation: Disadvantages Timely and costly to start People who own only a few shares are not very influential on how the business is run.

Co-operative: Characteristics Owned by members (or consumers) Each member has one vote (regardless of the number of shares they have) In other words, both Paul who invests $200 and has 20 shares and Joanna who invests $2000 and has 200 shares will each have ONE vote when making decisions about the business. Run by the board of directors

Co-operative: Advantages Members can purchase goods/services at a cheaper price It is easy to set up.

Co-operative: Disadvantages Decision-making process could be difficult.

Franchise: Characteristics A hybrid business corporation = parent company + usually sole proprietorship If your parent owned a Subway restaurant, as the business belongs to a corporation but is also owned and operated by a sole owner, it would be a franchise.

Franchise: Advantages The owner doesn’t have to worry about branding. The parent company provides lots of support and training.

Franchise: Disadvantages FRANCHISE FEE Payment for using the logo, brand name, etc. MONTHLY FEE The owner shares a part of profit every month. The owner is required to buy all the supplies from the corporation. It may be cheaper to buy bread and veggies from the local grocery but the owners may be required to purchase from the parent company.