1. Unit 3.01
Business… Know-how
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2. Entrepreneurs… OR
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3. Entrepreneur
A person who assumes risk of starting and operating a business for the purpose of making a profit

4. Acquiring a Business review…
Take over a family business
Buy an existing business
Start a business on your own
enterprise"
synonyms: business, company, firm, venture, organization, operation, concern, corporation, establishment, partnership; More
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5. Proprietorship
One Owner
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6. Sole Proprietorship Advantages Disadvantages 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
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7. Partnership
Two or more owners
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8. Partnership Advantages Disadvantages 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
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9. Partnership General OR Limited All partners are general
All partners- unlimited liability
All partners-full management of business
Limited
Usually an investor (called limited partner)
The investor : Usually does not manage day-to-day activities
Usually limited to the extent of the investment
What is the difference between a general partnership and a limited partnership?
Usually, when you hear the term "partnership," it refers to a general partnership -- that is, one where all partners participate to some extent in the day-to-day management of the business. Limited partnerships are very different from general partnerships, and are usually set up by companies that invest money in other businesses or real estate.
While limited partnerships have at least one general partner who controls the company's day-to-day operations and is personally liable for business debts, they also have passive partners called limited partners. Limited partners contribute capital to the business (investment money) but have minimal control over daily business decisions or operations.
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10. General Partnership
A partnership (also referred to as a general partnership) .
It is a business arrangement where two or more people (who are not husband and wife) are owners of a business.
Unlike a corporation, you do not need to file any documents with the state to make your business a partnership.
All of the partners have the ability to actively manage or control the business.
Each partner will have equal authority.
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11. Limited Partnership
A limited partnership is different from a general partnership in that it requires a partnership agreement.
Some information about the business and the partners must be filed with the appropriate state agency (usually the secretary of state).
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12. Limited Partnership
A limited partnership must have at least one general partner.
The partnership agreement will specify exactly which partner or partners have certain responsibilities and which have certain authority.
If you need a business type that limits the liability of all partners, LLC formation could be your best choice.
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13. Why choose a general partnership?
Ease of creation.
No state filing is required.
The partnership is created when the partners begin business activities.
Low cost of operation.
They are not required to pay a formation filing fee, ongoing state fees or franchise taxes.
The partnership must still obtain the business licenses and permits required for operation however.
Few ongoing requirements.
Unlike corporations, general partnerships are not required to:
Hold annual meetings of the owners,
Issue partnership interest,
Keep personal asset separate from business assets.
Having a partnership agreement that outlines how the partnership will be managed, the roles of each partner, and what events will cause the partnership to end operations is recommended.
Why choose a general partnership?
Ease of creation. No state filing is required. The partnership is created when the partners begin business activities.
Low cost of operation. Because general partnerships are not formed by means of a state filing, they are not required to pay a formation filing fee, ongoing state fees or franchise taxes. The partnership must still obtain the business licenses and permits required for operation however.
Few ongoing requirements. Unlike corporations, general partnerships are not required to hold annual meetings of the owners, issue partnership interest, and keep personal asset separate from business assets. Having a partnership agreement that outlines how the partnership will be managed, the roles of each partner, and what events will cause the partnership to end operations is recommended.
Modified by CMagno

14. Why choose a limited partnership?
Unlimited liability for general partners only.
In a limited partnership (LP), at least one partner has unlimited liability—the general partner(s). The other partners (limited partners) have limited liability,
Meaning their personal assets typically cannot be used to satisfy business debts and liabilities.
The amount of their liability is limited to their investment in the LP.
Limited partners are not involved in management.
The general partners oversee the day-to-day operations of the LP. Limited partners are basically silent investors
General partners ARE involved in management
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15. Partnership
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16. Corporation Owned by stockholders or shareholders
Stockholders (Shareholders) are individuals, or companies that own shares of a for-profit corporation.
The individuals own a specific number of shares, which they each purchased at a specific price.
The stockholders have invested their money to purchase these shares and they gain in two ways
(1) through dividends paid on these shares due to the corporation's profits,
(2) by selling their shares at a profit.
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17. Corporation Advantages Disadvantages 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
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18. Franchise
A type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchisor) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name.
In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-up and annual licensing fees.
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19. Franchise Advantages Disadvantages 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
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20. Franchise Décor and You Color Your Carpet Designs of the Interior
Color Your Carpet
Designs of the Interior
Decorating Den
DOTI Design Stores provide a unique opportunity to own a business that taps an industry that has reached US$200 Billion annually, providing quality home furnishings and interior design services to an affluent clientele. Beautiful showrooms, professional staff and a huge selection of merchandise from around the world attract our customers. Our Owners enjoy a support and training program unsurpassed in the home furnishings industry
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21. Building your business plan…..
Groups of 2, decide the type of business you are going to run.
Sole Proprietorship
Partnership General
Partnership Limited
Corporation
Franchise
Then, write down details about your business… Examples: name of the business, responsibilities of each owner, location, services or products, slogan, etc, etc, just throw several ideas…
More is better!!!!
Write down in a piece of paper and date it
When is DONE…Attach in your sketchbook .
Modified by CMagno