1. Business Structures

2. Business Structures Business Structures
I. Business Organizations (definition, example, strengths, weaknesses)
1. Sole Proprietorships – Owned and managed by one person. Lawn mower business. Flexibility and no business tax. 100% liability and lack of capital

3. 2. Partnerships – Two or more owners. Law Firm
2. Partnerships – Two or more owners. Law Firm. More specialized decisions, no business tax, and easier capital. 100% liability and internal ownership arguments.
General Partnership – all equal
Limited Partnership – some limited in ownership and has limited liability.

4. 3. Corporations – many owners, state and national approval required
3. Corporations – many owners, state and national approval required. Full legal status and no personal liability. Tax on all revenues and up for government regulations.
Terms: Fringe Benefits – health coverage and retirement plans.
Unlimited Liability – 100% responsible for debts.
Limited Liability – only responsible by foregoing investment.

5. Stock – sale of a portion of the corporation.
Common Stock – voting ownership based on shares.
Preferred Stock – non-voting ownership that gets dividends first.
Dividend – payment on profit of corporation.
Bond – loan by corporation to be paid back with interest.
Bankruptcy --closing corporation that ends all debt liability.