1. Halaman 1 Matakuliah: J0084 / Introduction to Management and Business Tahun: 2007 Versi: 1 / 3 Pertemuan 18 (Eighteenth Meeting) Selecting Type of Business Ownership

2. Halaman 2 Learning Outcome Student should be able to show the types of business, and also understand how to measure business performance -> C3

3. Halaman 3 Learning Outline Sole Proprietorship Partnership Corporation The Affect of Proprietorship Toward Return and Risk Obtaining the Ownership of Existing Business

4. Halaman 4 1. Sole Proprietorship a. Advantages of Sole Proprietorship: 1) All profit belongs to individual proprietor 2) Simple organization 3) Complete control 4) Low Tax Rate

5. Halaman 5 b. Disadvantages of Sole Proprietorship: 1) Responsible to total losses 2) Unlimited responsibility 3) Limited financial access 4) Limited skill b. Disadvantages of Sole Proprietorship: 1) Responsible to total losses 2) Unlimited responsibility 3) Limited financial access 4) Limited skill

6. Halaman 6 2. Partnership a. Advantages of Partnership: 1) Additional funding 2) Division of losses 3) More specialization

7. Halaman 7 b. Disadvantages of Partnership: 1) Division of control 2) Unlimited responsibility 3) Division of profit

8. Halaman 8 3. Corporation a. Advantages of Corporation: 1) Limited responsibility 2) Financial access 3) Transfer of ownership

9. Halaman 9 b. Disadvantages of Corporation: 1) High organizational cost 2) Financial transparancy 3) Agency problem 4) High tax rate

10. Halaman 10 4. The Affects of Ownership Toward Return and Risk a. The Impact of Ownership to Return on Equity Profit after Tax ROE = Equity $ 150.000 ROE = $ 1.000.000 ROE = 0,15 OR 15% b. The Impact of Ownership to Risk

11. Halaman 11 5. Gaining the Ownership of Existing Business a. Taking over the family Business b. Buy an existing business c. Franchise

12. Halaman 12 1) Types of Franchise: c) Manufacturing arrangement b) Chain style business a) Distributorship Franchise

13. Halaman 13 2) Advantages of Franchise: a) Proved management style b) Popular name c) Financial support

14. Halaman 14 3) Disadvantages of Franchise: a) Division of profit b) Less of control 4) Popularity of Business to Business Franchise