BME416-Business

BME416-Business - The organized effort of individuals to...

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The organized effort of individuals to  produce and sell, for a profit, the goods  and services that satisfy society’s needs The exchange of  money  for  product and the subsequent use of that money  to produce and sell more product
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What is a Business Entity What is a Business Entity A business entity is a legally defined type of  business organization that exists for the  purpose of transacting business.
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How are Business Entities Formed How are Business Entities Formed Simple entities like a  Sole Proprietorship  may be  formed inadvertently by the simple act of engaging  in a personal business transaction. The formation of a more complex business entity  like a  Corporation  may require the services of a  specialized attorney and a great deal of  documentation and effort.  Some formal business entities can be established  through prepackaged legal services (e.g.  LegalZoom); useful for tax and liability purposes.
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Issues That May Be Considered When  Issues That May Be Considered When  Forming a New Business Entity Forming a New Business Entity Purpose of Business Entity Ownership of the Business Business Liability Projected Future Revenue Future Taxes Managerial Responsibility Intended Disposition of Business
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Purpose of Business  Purpose of Business  Entity Entity A Small Hobby Business A Family Operation A Professional Practice A Concept with Real Growth Potential
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Sole proprietorship owned by one person Partnership association of two or more persons to act  as co-owners of business Corporation an artificial person created by law, with  most legal rights of a real person shares of stock allow fractional ownership  by many individuals and other entities Forms of Business  Forms of Business  Ownership Ownership
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Sole Proprietorship Sole Proprietorship One Owner Operator Simple Low Cost Startup Owner Managed Funded by Owner / Bank Loans Backed by  Personal Assets of Owner Limited Resources Unlimited Personal Liability Profits and Losses Pass To Owner Limited Lifetime
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General Partnership General Partnership Two or More Partner Operators Simple Low Cost Startup / Partnership  Agreement Recommended Managed by Partners Funded by Partners / Bank Loans Backed by  Partnership and Personal Assets of Partners  Limited Resources Unlimited Personal Liability Profits and Losses Pass To Owners Limited Lifetime or as Defined in Partnership  Agreement
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Limited Partnership Limited Partnership General and Limited Partners (Owners)
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BME416-Business - The organized effort of individuals to...

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