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Chapter Five Forms of Ownership

PART TWO:STARTING & GROWING

A SUCCSSFU!"USINSS

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Chapter !earnin# O$%etives

"asi Forms of "'siness Ownership

Franhises & Speia( Forms of Ownership

)er#ers & A*'isitions

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"asi Forms of Ownership

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So(e Proprietorships

"ene5ts 6o' an start 'p the $'siness with ease

6o' an ma7e a(( +o'r own 1eisions

6o' #et to 7eep a(( the pro5ts

6o'r ta8es are re(ative(+ simp(e 6o' an (ose the $'siness with ease

9raw$a7s 6o' have unlimited fnancial liability

6o' have (imite1 5nania( reso'res & few ringe benefts

6o' have (imite1 mana#ement reso'res

6o' wi(( $e investin# a (ot of time in the ompan+

)an+ $'sinesses en1 when the owner 1ies or retires

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Partnerships

Fo'r T+pes Genera( !imite1

)aster !imite1 !imite1 !ia$i(it+

A1vanta#es ase of start 'p Inrease1 5nania(

reso'res

Inrease1 mana#ementreso'res

Ta8es are simp(e

9raw$a7s Persona(it+ or

partnership onits Un(imite1 (ia$i(it+ 4ar1 to en1 or pass

a(on# partnerships

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Corporations

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Corporations

A1vanta#es !itt(e or no (ia$i(it+

Possi$(e ta8 $rea7s

Inrease1 5nania( reso'res

)ore mana#eria( e8pertise

ase of se((in#

9raw$a7s !ots of start;'p paperwor7 an1 osts2 some on;#oin#

Can $e ta8e1 twie

Nee1 to p'$(i(+ 1is(ose 5nania( information

To'#h to en1 the orporation

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Cooperatives

!imits the power of eah shareho(1er

!ess a$o't pro5t2 more a$o't provi1in# aservie

Over .. ompanies2

(i7e Ae 4ar1ware an1 S'n7ist

Shareho(1ers e(et their own $oar1 of1iretors

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Franhises

A ranchiseis anarran#ement inwhih a $'siness

owner a((owsothers the ri#ht to'se its name an1se(( its #oo1s or

servies within aspei5#eo#raphia( area3

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Franhises "ene5ts & 9raw$a7s

"ene5ts of Franhisin# Own +o'r own $'siness

Start +o'r new enterprise with some name reo#nition

Fo((ow someone e(se?s proven form'(a for 1oin# $'siness

Reeive mar7etin# s'pport Reeive mana#ement an1 5nania( s'pport

9raw$a7s !ar#e initia( investment

Nee1 to share sa(es with franhisor C(ose mana#ement of franhisor

Potentia( onits with franhisor

Inate1 e8petations of ret'rn on investment

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)er#ers an1 A*'isitions

4ow to Grow Interna( e8pansion

8terna( e8pansion

)er#er A*'isition

Wh+ )er#ers & A*'isitions O'r Short't to #rowth

)ana#ement ta(ent

Savin# mone+

Ta8 $ene5ts

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)er#ers an1 A*'isitions

T+pes of strate#i mer#ers 4ori@onta(: same in1'str+2 same ativit+

ertia(: same in1'str+2 1iBerent ativities

Con#(omerate: 1iBerent in1'stries2 1iBerent ativities

Unfrien1(+ mer#ers 4osti(e ta7eovers

Ten1er oBer & Pro8+ 5#ht

White Dni#htsE & Poison pi((sE

"orrow & "'+ Strate#ies

!evera#e1 $'+o't

mp(o+ee $'+o't

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!earnin# O$%etives S'mmar+

"asi Forms of "'siness Ownership

Franhisees

)er#ers & A*'isitions

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