Business Ownership

Business ownership The individual or groups which own a business and it's legal entities. Business ownership includes: -Determining which type of business fits the needs. -Securing finance. -Name the company. -Protecting business ideas. -Location. -Licenses and permits. Ways to become a business owner -Start a new business. -Purchase a franchise. -Purchasing an existing business (non-franchise). -Taking over family business. Types of business ownership -Sole proprietorship. -Partnership. -Corporation. -Franchise. Sole proprietorship -Owned and operated by one individual. -Most common form. Sole proprietorship requirements -Provide funds, resources, and management responsibility to start and run a business. Advantages of sole proprietorship -Relatively simple with less taxes and government regulations. -Owner entitled to all profits. -Relatively easy to start. -Easy to maintain business confidentiality. Disadvantages of sole proprietorship -Harder to raise money to expand the business since the company's shares are not sold. -Unlimited liability: complete business responsibility in business debts and losses- can lose portion of personal assets. -High start up cost. -Owner can have limited skills. Partnership -Legal agreement between 2 or more people responsible for a business. -Least common form. 2 forms of partnership General partnership and limited partnership. General partnership Share equal liability in business profits and losses. Limited partnership Have unequal share and liability in business; responsible only for money they invested.