2. Entrepreneur – Factors of Production – Educate Yourself Competition? Getting Help from the Government – - SBASBA $ for new business startups – State Department of Commerce / Community Affairs - DOCDOC Gives low-rent buildings, Management advice, etc. Uses State and federal funds Help from the Internet

3. – Equipment, wages, insurance, taxes, rent, utilities – Don’t forget YOUR wages – Subtract Expenses from Income to find Profits (needed for taxes) – Programs available on internet to record expenses and incomes – Can also figure net worth – difference between what you OWN and what you OWE – Expenses tax deductible – Need to know Net Business Income – Opportunity Cost: Is Risk of losing savings/money worth being own boss???

4.  Definition  Advantages: ◦ Taxes usually low  Only taxed on Profits  Disadvantages: ◦ Unlimited Liability!!!???

5.  Legally signed agreement ◦ How assets will be distributed if ended  Advantages of a Partnership  Areas of Expertise ◦ Taxes low  Split Profits  Disadvantages ◦ Decision making slower  Both have to agree

6.  Limited Partnerships  Management and financial responsibilities  Only give funds  Losses limited to contribution  Limited Liability Company (LLC)  Joint Venture ◦ Temporary – Task Specific

7.  Owned by many, law treats as one  Stock is OWNERSHIP  Advantages: ◦ Stockholders –  Disadvantages: ◦ Taxed higher than other business organizations  Must do 3 things to start a corporation ◦ Register the Corporation with the Government

8.  Must file  http://www.sos.state.oh.us/ http://www.sos.state.oh.us/  Must Include: ◦ Name, Address, and Purpose of the Corporation ◦ Names and Addresses of Initial Board of Directors ◦ Number of shares of stock to be issued ◦ Amount of money capital raising by issuing stock  If allowable by state they will issue you a Corporate Charter (License to operate from that state)

9. ◦ Advantages  Voting Rights  Share in Future Profits ◦ Disadvantages  No Guaranteed Dividend ◦ Advantages  Paid before Common Stockholders if business fails ◦ Disadvantages  No Voting Rights

10.  Founder and any partners selects first board  Bylaws govern elections after first chosen ◦ Set of Laws written after Corporate Charter given  Describes selling of stock and dividends  Duties of company officers  What the Board does? ◦ Supervises the corporation ◦ Hiring of officers ◦ DOES NOT run the day-to-day operations

11.  Original group – Franchisor  Buyer –  Must pay a fee –  Examples: ◦ McDonalds and other Fast Foods ◦ Holiday Inn and other Hotels ◦ Speedway and other Gas Stations ◦ ???

12.  Name Recognition  Trained on how the Parent Company markets, produces, and sells products ◦ Franchisor does the Advertising

13.  Loss of Control ◦ Franchisor often dictates  Legal Problems ◦ Obligation not met