Chapter 4: Selecting a Form of Business Ownership
Link to Chapter 4: Selecting a Form of Business Ownership
Course Outcomes/Goals -
Identify the advantages and disadvantages of different types of business ownership.
4.1 Factors to Consider
Before choosing a form of business ownership, there are certain questions you should ask yourself. We'll look through these questions together in Ch 4.1. Make sure to read Ch 4.1 - 4.5, anything in those sections is fair game on the test.
Ch 4.2 - 4.4 Form of Business Ownership Project
In class we will look at the links below and learn about memory training techniques.
You will use one of these techniques to present information about the form of business ownership you were given. Here is the rubric for this project.
What if we could combine the best features of a sole proprietorship, partnership, and corporation? It turns out we can. In class we'll talk about other types of business ownership.
Let's review and discuss liability & taxes in the other forms of business.
Limited Liability Company - Chrysler (now FCA US LLC), shown above, is an example of a LLC. We'll look at the pluses and minuses of a LLC and how it compares to an S-Corporation using our book.
- Operating Agreement - We'll break up this example to see what might be included
- Personal Liability - We'll look at examples of personal liability from our book and talk about loan guarantee's (eg. co-signed loan)
Cooperative - Our book defines a cooperative as a business ".. owned and controlled by those who use its services."
Not-For-Profit Corporation (Nonprofit) - Formed to serve the public, not to make money.