2014 business org for students
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This document discusses different types of business organizations including sole proprietorships, partnerships, and corporations. It notes the pros and cons of each structure and provides examples. It specifically discusses double taxation that can occur with corporations and the liability risks of sole proprietorships and partnerships if they are sued. The document also mentions forming articles of incorporation and the differences between common and preferred stock.
2014 business org for students
- 1. 1. Describe a time when you were injured at a business, or might have been injured.
- 2. Why are Entrepreneurs important? 2 reasons
- 3. Say you want to become…
- 4. Risk vs. Reward How likely is my business to cause harm? Liability Responsibility for risks
- 5. Sole Proprietorship Single person 2 positives, 2 negatives Good for: low liability, low entry costs Benefits: single person has all control and keeps all profits Drawbacks: single person assumes all risk, hard to raise capital Examples: small construction firms, artistic firms, bloggers, import/export
- 6. Partnerships Two or more people in business together 2 positives, 2 negatives Good for: low liability Benefits: low entry costs, shared costs Drawbacks: partners assume all risk hard to raise capital, agreements “like a marriage” Examples: law firms, small specialized firms
- 8. Liability If your Sole Proprietorship or Partnership is sued… They can take: Your house Your car Your money in the bank Your future money!!!
- 11. Corporation A legal “person” Good for: higher liability Benefits: owners protected easier to raise capital Drawbacks: double taxation increased regulation Examples: restaurants, LLC’s, Sports Franchises
- 12. Double taxation Corporation pays its own taxes: 25-35% Corporation pays employees wages/salary Employees ALSO pay taxes: 20-38% Trade off is less liability more tax
- 13. 2 types of Corporations Privately held – owned by founders or owners Publicly held – owned by shareholders
- 14. Corporations Partnerships Sole Proprietorships #2 OPTIC graph on page 220
- 15. On a full sheet Bellringer 1. OPTIC for this graph Source: Forbes Magazine 2011
- 16. Which of the 3 business orgs would you use to start a…..
- 17. Which of the 3 business orgs would you use to start a…..
- 18. Which of the 3 business orgs would you use to start a…..
- 19. Which of the 3 business orgs would you use to start a…..
- 20. Which of the 3 business orgs would you use to start a….. Tile setting
- 21. Which of the 3 business orgs would you use to start a…..
- 22. Which of the 3 business orgs would you use to start a…..
- 23. Which of the 3 business orgs would you use to start a…..
- 24. Which of the 3 business orgs would you use to start a…..
- 25. Business Org Closure Pages 220-223 2. How hard would it be to file articles of incorporation in the state of Arizona? 3. What is the difference between common and preferred stock? 4. Explain how double taxation works. 5. What would you have to do if you wanted to open a Subway franchise? 6. Compare and contrast the advantages of owning a franchise like a Subway. 3 for each 7. Which business organization should you use to open a restaurant? & why? 8. Which business organization should you use to open a computer tech company? & why? QE. Find an entrepreneur in the book who you could admire and explain what you could learn from them. (list on page “x”)