Business Know-how Housing and Interiors

Entrepreneur A person who assumes risk of starting and operating a business for the purpose of making a profit

Acquiring a Business  Take over a family business  Buy an existing business  Start a business on your own

One Owner Proprietorship

Sole Proprietorship  Advantages Easy start up All profits to owner Business pays no income tax Little government regulations Direct control  Disadvantages Unlimited liability Difficulty in financing Limited life (death) All losses responsibility of owner

Partnership  Two or more owners

Partnership  Advantages Easy start up Business pays no income tax Limited government regulations Shared financing and losses  Disadvantages Unlimited liability Shared profits Limited life(death) Shared control

Partnership  General All partners are general All partners- unlimited liability All partners-full management of business  Limited Usually an investor Usually does not manage day-to-day activities Usually limited to the extent of the investment

Corporation  Owned by stockholders

Corporation  Advantages Limited liability Ease in raising capital $$$ Continuity of business Ownership is easily transferred  Disadvantages Expensive to form Profits depend on investment Double taxation Lack of control by owners High government regulations

Franchise  Décor and You  Color Your Carpet  Designs of the Interior  Decorating Den

Franchise  Advantages Established name Reduced risk of failure Benefit of national name Training provided Disadvantages  Cost to purchase is high  Additional fees for local advertising  Percentage of sales goes to franchisor  Lack of freedom in running business