1. Forms of Business Ownership
Business Today
Chapter 4
Forms of Business Ownership 1

2. How to Categorize Companies by Sector
Growth of the Service Sector
Factors in Service Sector Growth
Increase demand for service
Demographic changes
Number & complexity of goods increasing
Complex global economy
Technology
Service businesses
Goods-producing businesses
Prentice Hall 2 2

3. How to Categorize Companies by Sector
Growth of the Service Sector
Service Sector Segments
Retailing & wholesaling
Finance & insurance
Transportation & utilities
Other services
Capital-intensive businesses
Labor-intensive businesses
Barriers to entry
Prentice Hall 3 3

4. How to Categorize Companies by Sector
Production’s Revival
Manufacturing
Construction
Mining
Agriculture
Commodity business
Prentice Hall 4 4

5. Categorizing Companies
Sole Proprietorship
Advantages
Ease of establishment
Work for yourself
Make your own decisions (hours)
Keep all the profits
Privacy
Prentice Hall 5 5

6. Categorizing Companies
Sole Proprietorship
Disadvantages
Limited financial resources
Pay more for credit
Unlimited liability
Limited life
Prentice Hall 6 6

7. Categorizing Companies
Partnerships
Advantages
Easy to form
Diversity of skills brought to the business
Increase the chances that the organization will endure
General partnership
Limited partnership
Master limited partnership (MLP)
Prentice Hall 7 7

8. Categorizing Companies
Partnerships
Disadvantages
Unlimited liability
Interpersonal problems
Strategic Business Partnerships
Consortium
Cooperatives
Prentice Hall 8 8

9. Categorizing Companies
Corporations
Advantages
Limited Liability
Liquidity
Produce goods more efficiently
Reach more customers
Finance projects internally
Shareholders
Stock
Prentice Hall 9 9

10. Categorizing Companies
Corporations
Disadvantages
Required to follow certain government rules
Required to publish finance & operations information
Corporate profits are taxed twice
Prentice Hall 10 10

11. Categorizing Companies
Corporations
Types of Public Corporations
Government-owned corporations
Quasi-government corporations
Prentice Hall 11 11

12. Categorizing Companies
Corporations
Types of Private Corporations
Open corporation
Closed corporation
S corporation
Limited liability companies
Subsidiary corporations
Holding companies
Publicly traded
Not publicly traded
Prentice Hall 12 12

13. Categorizing Companies
Corporate Structure and Governance
Shareholders
Board of Directors
Officers
CEO
Prentice Hall 13 13

14. Mergers & Acquisitions
Types of Mergers
Horizontal Merger
Vertical Merger
Conglomerate Merger
How Mergers Occur
Hostile Takeover
Merger
Acquisition
Divestiture
Trusts
Tender offer
Proxy fight
Prentice Hall 14 14

15. Mergers & Acquisitions
Current Trends
The Debate
Merger & Acquisition Defenses
Poison Pill Shark Repellent
Golden Parachute White Knight
Prentice Hall 15 15