2. Sole Proprietorship  A business owned and run by one person  Makes up about 80% of all businesses

3. Advantages  Easy to get started  Relative ease in managing Quick decision making  Doesn’t have to share any profits  Does not have to pay business income tax

4. Major Weaknesses  Unlimited Liability Owner is personally responsible for all losses & debts  Difficulty in raising financial capital (money)  A minimum # of employees & minimum inventory

5. Sole Proprietorships AdvantagesDisadvantages Easy to open or closeLimited Funds Few RegulationsLimited Life Freedom and controlUnlimited Liability Owner keeps profits

7. What do large corporations offer to attract new hires?  Fringe benefits

8. What happens when the owner dies?  IT DIES

9. Partnership  A business jointly owned by 2 or more people

10. Advantages  Yes  They bring ideas & different areas of expertise

11. Major Disadvantages  Each partner is responsible for the other’s actions  It has limited life  Potential conflict between partners

12. Corporations  A business organization recognized by laws as a separate legal entity  Charter You are creating a legal entity separate from the people who own it! It can sue and be sued!

13. Who owns a corporation?  Stockholders (WE DO!)

14. Two Duties of the Board of Directors  Select a president  Keep shareholders informed

15. Advantages  Ease of raising money  The corporations are fully responsible for its debts & obligations  The business continues to exist even when ownership changes  Selling & buying stock

16. Disadvantages  Very expensive  No  Double, Corporate, Personal  More government regulations

17. http://money.cnn.com/2006/04/07/pf/bestjobs_moneymag_perks/index.htm http://www.youtube.com/watch?v=EjTZF19jBs8 http://www.nbcnews.com/business/best-company- work-2014-2D11732356 http://www.youtube.com/watch?v=j6h-gm01Fb0 Awesome Companies to Work For

18. Business Combinations Two reasons why businesses merge:  The desire of a business to become larger  Efficiency

19. Economies of Scale  Cost of production falls as the business gets larger  Buy in bulk  Advertising campaigns  Eliminate competition  Research & development

20. Horizontal Merger  Two or more firms that produce the same kind of product

21. Vertical Merger  When firms involved in different steps of manufacturing come together

22. Conglomerate  A firm that has at least 4 businesses, each making unrelated products GE

23. Philip Morris

24. Multinational  A large corporation with branches in several countries

25. Pros & Cons  Increase tax revenue & creating jobs  Outsourcing jobs http://www.cbsnews.com/video/watch/?id=4312234n http://www.cbsnews.com/video/watch/?id=4312039n DUBAI INC.