2. Most common form of business Most common form of business Owned and run by one person Owned and run by one person Almost no requirements Almost no requirements

3. Ease of start up Ease of start up Ease of management Ease of management Owner enjoys profits Owner enjoys profits No separate taxes No separate taxes Psychological satisfaction Psychological satisfaction Ease of ending business Ease of ending business

4. Unlimited liability Unlimited liability Difficulty raising financial capital Difficulty raising financial capital Size and efficiency Size and efficiency Limited managerial experience Limited managerial experience Difficulty attracting qualified employees Difficulty attracting qualified employees Limited life Limited life

5. http://www.earnmydegree.com/online-education/learning-center/education-value.html Avg yearly income https://www.labor.state.ny.us/ui/employerinfo/interest-assessment-surcharge.shtm NYS Dept of Labor – new rates http://politicalcalculations.blogspot.com/2008/02/us- unemployment-insurance-and-workers.html Unemployment and Comp tax rate – state by state

6. Jointly owned by two or more Jointly owned by two or more Least numerous form of business Least numerous form of business Smallest proportion of Smallest proportion of sales sales

7. Types of Partnerships General Partnership – all partners are responsible for management and financial obligations of the business General Partnership – all partners are responsible for management and financial obligations of the business Limited Partnership – at least one partner is not active in the daily running of the business Limited Partnership – at least one partner is not active in the daily running of the business

8. Forming a Partnership May be legal paperwork needed May be legal paperwork needed Specify arrangements between partners Specify arrangements between partners How profits are divided How profits are divided How to add/subtract partners How to add/subtract partners How to distribute assets if business ends How to distribute assets if business ends Etc. Etc.

9. Ease of establishment Ease of establishment Ease of management Ease of management Can attract financial capital Can attract financial capital Slightly larger size Slightly larger size Easier to attract top talent Easier to attract top talent

10. Each partner responsible for acts of others Each partner responsible for acts of others Limited life Limited life Potential for conflict Potential for conflict

11. Recognized by law as a separate legal entity Recognized by law as a separate legal entity Has rights of an individual Has rights of an individual One fifth of all firms in U.S. One fifth of all firms in U.S. 90% of all sales 90% of all sales

12. Ease of raising capital Ease of raising capital Professional managers to run the firm Professional managers to run the firm Limited liability for owners Limited liability for owners Unlimited life Unlimited life Ease of transferring ownership Ease of transferring ownership

13. Difficult and expensive to get a charter Difficult and expensive to get a charter Owners have little say Owners have little say Double taxation of profits Double taxation of profits Subject to government regulations Subject to government regulations

14. Non Profit Organizations Operates in a businesslike way to promote the collective interests of its members. Operates in a businesslike way to promote the collective interests of its members. Not for financial gain Not for financial gain

15. Cooperatives Is a business that belongs to the people who use it. Is a business that belongs to the people who use it. Owned and operated by a group of individuals for their mutual benefit. Owned and operated by a group of individuals for their mutual benefit.

16. Cooperatives Consumer Cooperatives – voluntary association that buys bulk amounts on behalf of members. Consumer Cooperatives – voluntary association that buys bulk amounts on behalf of members. Service Cooperatives – voluntary association that provides services to its members. Service Cooperatives – voluntary association that provides services to its members. Producer Cooperatives – voluntary association of producers that helps promote or sell its products. Producer Cooperatives – voluntary association of producers that helps promote or sell its products.

17. Labor, Professional and Business Organizations Labor Unions- organization of workers (UAW, AFL-CIO) represents its member’s interests in employment issues. Labor Unions- organization of workers (UAW, AFL-CIO) represents its member’s interests in employment issues. Professional Associations – organization of specialized occupations (AMA, ADA, ABA) –work to improve working conditions, skill levels. Professional Associations – organization of specialized occupations (AMA, ADA, ABA) –work to improve working conditions, skill levels. Business Associations – organization of businesses (BBB, C of C) – promote collective interests. Business Associations – organization of businesses (BBB, C of C) – promote collective interests.

18. Government Direct Role – produce and distribute goods and services to consumers Direct Role – produce and distribute goods and services to consumers Public Utilities Public Utilities FDIC FDIC USPS USPS Police/fire protection Police/fire protection Roads/libraries/parks/schools Roads/libraries/parks/schools Indirect Role – acts to make sure economy operates smoothly Indirect Role – acts to make sure economy operates smoothly Regulate certain industries Regulate certain industries

19. Franchises A right granted to an individual or group to market a company's goods or services within a certain territory or location. A right granted to an individual or group to market a company's goods or services within a certain territory or location. McDonalds McDonalds Subway Subway UPS Store UPS Store

20. Franchises Advantages Advantages Corporate Image Corporate Image Low Failure Rate Low Failure Rate Training Training Savings in time Savings in time

21. Franchises Disadvantages Disadvantages Cost Cost Restrictions Restrictions Limited Growth Limited Growth Guilt by Association Guilt by Association

22. Merger When firms merge, one gives up its separate legal identity When firms merge, one gives up its separate legal identity Grow faster Grow faster Efficiency Efficiency Acquire new product line Acquire new product line Eliminate rivals Eliminate rivals New identify New identify

23. Mergers Types of Mergers Types of Mergers Horizontal Mergers – takes place when two or more firms that produce the same kind of product, join forces. Horizontal Mergers – takes place when two or more firms that produce the same kind of product, join forces. Chase National and Bank of Manhattan Chase National and Bank of Manhattan Vertical Mergers – firms in different steps of manufacturing or marketing join together Vertical Mergers – firms in different steps of manufacturing or marketing join together Automaker merging with tire company Automaker merging with tire company

24. Conglomerates A corporation becomes so large through mergers and acquisitions. A corporation becomes so large through mergers and acquisitions. Has at least four businesses Has at least four businesses Each making unrelated products Each making unrelated products None of which is responsible for a majority of its sales. None of which is responsible for a majority of its sales. Diversification is the main reason Diversification is the main reason

25. Multinationals A corporation that has manufacturing or service operations in a number of different countries. A corporation that has manufacturing or service operations in a number of different countries. Subject to law in that country Subject to law in that country Pay taxes in that country Pay taxes in that country New technology and new jobs for host country New technology and new jobs for host country Abuse their power by paying low wages Abuse their power by paying low wages And exporting scarce natural resources And exporting scarce natural resources