1. Business Know-how Housing and Interiors

2. Entrepreneur A person who assumes risk of starting and operating a business for the purpose of making a profit

3. Acquiring a Business  Take over a family business  Buy an existing business  Start a business on your own

4. One Owner Proprietorship

5. Sole Proprietorship  Advantages 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

6. Partnership  Two or more owners

7. Partnership  Advantages 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

8. Partnership  General All partners are general All partners- unlimited liability All partners-full management of business  Limited Usually an investor Usually does not manage day-to-day activities Usually limited to the extent of the investment

9. Corporation  Owned by stockholders

10. Corporation  Advantages 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

11. Franchise  Décor and You  Color Your Carpet  Designs of the Interior  Decorating Den

12. Franchise  Advantages 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