Business Organization

Have you ever thought about starting your own business? If you were your own boss, what type of business could

you see yourself running 5, 10 ,15 years from now?

Sole ProprietorshipA business owned and managed by a single individual.

• 75% of all businesses• 6% of sales.• (67% make less than

$25k).

• Examples- Bike shop, barber, gardener, bakery.

Sole ProprietorshipPositive

•Full control.

•Start-up costs low (business license).

•Sole receiver of profit.

Sole ProprietorshipNegative

• Unlimited liability.

• Limited capital ($) for expansion.

PartnershipsA business organization owned by two or more persons.

• 7% of all businesses.• 5% of all sales.• *General v. Limited Partnerships

or (LLP).

• Examples- doctor, lawyer, accountant.

PartnershipsPositive

• Shared decision making

• Larger pool of assets = expansion

PartnershipsNegative

• Unlimited liability.

• Potential for conflict.

CorporationsA legal entity, or being, owned stockholders.

• 20% of all businesses.• 90% of all sales.• Examples: Wells Fargo, UPS,

Disney, Wal-Mart.

CorporationsPositives

• Limited liability.

• Capital investment and expansion easy w/stock offering.

CorporationsNegative

• Double taxation.

(Corporate and Individual)

• Loss of Control = Stockholders.

Wal-Mart

1948- 1 store.1962- 11 (1969 incorporated).1979- 276.1985- 882.2005- 6,200= 312 billion in revenue.2009- 408 billion in revenue.

Wal-Mart Facts• Wal-Mart is the largest company in the world.• If Wal-Mart were a country, it would rank #21 in the

world in terms of GDP.• Wal-Mart annual sales in 2005 were higher than

Target, Sears, K-Mart, JC Penney and Kohl’s combined.• Wal-Mart is the largest private employer in the

United States (1.7 million people).• Wal-Mart has 5,170 stores throughout the world.

*greater than GM, Ford, and IBM combined.• Wal-Mart sales in 06’ totaled $340 billion dollar.• Wal-Mart accounts for 10% of all Chinese exports.• If Wal-Mart were a country, it would be China’s

seventh largest trading partner.

Is Wal-Mart Evil?“Since the mid 1990s alone, cheap imports

from China have saved U.S. consumers

roughly $600 billion and saved U.S.

manufacturers untold billions in cheaper

parts and labor costs for their products.”