Course Hero Logo

Chapter 4.pptx - Because learning changes everything. ®...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 10 out of 43 pages.

Because learning changes everything.®Chapter 4Options for OrganizingBusinessnaqiewei/DigitalVision Vectors/Getty ImagesCopyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning ObjectivesLO 4-1Describe the advantages and disadvantages of thesole proprietorship form of organization.LO 4-2Describe the two types of business partnership andtheir advantages and disadvantages.O 4-3Describe the corporate form of organization and its
advantages and disadvantages.
© McGraw Hill2
© McGraw Hill3Table 4-1 Various Forms of BusinessOwnership1StructureOwnershipTaxationLiabilityUseSoleproprietorshipOne ownerIndividualincome taxedUnlimitedOwned by a singleindividual/easiestway to conductbusinessPartnershipTwo or moreownersIndividualowners’income taxedSomewhatlimitedEasy way for twoindividuals toconduct businessCorporationAny number ofshareholdersCorporateandshareholdertaxedLimitedA legal entity withshareholders orstockholders
© McGraw Hill4Table 4-1 Various Forms of BusinessOwnership2StructureOwnershipTaxationLiabilityUseS corporationUp to 100shareholdersTaxed as apartnershipLimitedLegal entity withtax advantages forrestricted numberof shareholdersLimitedliabilitycompanyUnlimitednumber ofshareholdersTaxed as apartnershipLimitedAvoid personallawsuits
© McGraw Hill5Sole Proprietorships1Sole ProprietorshipsOwned and operated by one individual.Many focus on services rather than manufacturing.Typically employ fewer than 50 people.Comprise nearly three-fourths of all U.S. companies.Women business owners less likely to get access to credit.
© McGraw Hill6Figure 4-1 Comparison of Sole Proprietorships,Partnerships, S Corporations, and C CorporationsTax Policy Center, “Fiscal Facts: Breakdown of US Businesses,” May 11, 2020,(accessed May 27, 2020).Access the text alternative for slide images.
© McGraw Hill7Sole Proprietorships2Sole proprietorships, the most common form of businessorganization in the United States, commonly includebusinesses such as florists, restaurants, and hair salons.
© McGraw Hill8Sole Proprietorships3Advantages of Sole ProprietorshipsEase and cost of formation.Allows high level of secrecy.Owner keeps all profits.Flexibility and control of business.Government regulation is minimal.Taxed at individual tax rates.Can be dissolved easily.
© McGraw Hill9Sole Proprietorships4Disadvantages of Sole ProprietorshipsUnlimited liability.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 43 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Brown
Tags
Corporation, B Corporations, McGraw Hill LLC

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture