1. Business Organizations

2. What do the abbreviations mean
What do the abbreviations mean? How many people do you think own this business and what do the abbreviations after the names mean?
McDonald’s Corporation
Baco Itaú, S.A.
Odebrecht of America, Inc.
TimAir Limited
B. P. p.l.c.
Repsol YPF
Ballast Nedam Corporate
Goldman Sachs Group
Galmiche and Sons Heating and Cooling
Toyota Motor Corporation
Boeing Corporation
AOL Time Warner
Schnurbusch & Assoc., LLC
Brandvein & Co. PC
Cummings Oberkfell & Ristau Adjusters, Inc.
Superior Heating and Cooling
Rhymes Corporation
Beckmann Brothers
Chiodini Associates
Dawdy & Associates, Inc.
Kodner Watkins Muchnick & Dunne LLC
Bridal Inspirations, Ltd.
Earl Scheib Paint & Body
Miller Plumbing
Mesa Cycles

3. Sole Proprietorship operated by an individual or a married couple
minimal government regulations.
Represents 70% of all businesses

5. Advantage and Disadvantages of Sole Proprietorship
get to keep the profit from the business
operate as you want
easy to open
Disadvantages
limited access to financial capital (hard to raise money)
unlimited liability (all responsibility on owner)
little free time
Liability: legal and financial responsibility for business if something goes wrong

6. Partnership operated by two or more people Two types:
General partners - share all day to day duties and responsibilities.
Limited partners – limits the responsibility the partners share for the business
Each partner is only responsible for their part and actions

7. Advantages and Disadvantages of Partnerships
partners can specialize (focus on fewer tasks)
Easier to raise capital (money for the business)
possibility of more time off
Disadvantages:
unlimited liability (unless limited partnership)
must share profits
hard to transfer ownership
Share the Decision making/ management decisions

8. Corporation
Separate from the stockholders (people who invest in the company) who own it.
Government treats it as if it were a person
Stockholders are the legal owners of a corporation
Do not necessarily work for the corporation (most do not)

11. Advantages and Disadvantages of a Corporation
limited liability for owners
specialization
easier to raise capital and to transfer ownership
Can continue to operate long after the original owners are dead
Disadvantages:
more regulations, difficult to start and close
corporate tax rates are often higher
double taxation (corporations pay taxes on profits, and owners also pay taxes on any dividends – their share of the profits)
Owners do not make daily decisions, risk relying on others to do so