Chapter 5 - Business Mgmt. Chapter 5 Basic Form of Business...

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Business Mgmt. Chapter 5 - Basic Form of Business Ownership o Sole Proprietorship – A business that is owned and managed by one person o Partnership – A legal form of business with two or more owners o Corporation A legal entity with authority to act and have liability separate from its owners - Sole Proprietorship o Advantages Ease of starting and ending the business Being your own boss Pride of Ownership Leaving a Legacy Retention of Company profit No Special Taxes o Disadvantages Unlimited Liability – Responsibility of business owners for all the debts of the business Limited financial resources (only out of your pocket and borrowing) Management difficulties – difficult to attract good, qualified employees to help run the business Overwhelming time commitment – you have to do almost everything Few fringe benefits; no health insurance, sick leave, disability, etc. Limited growth, life span - Partnerships o General Partnership – All owners share in operating the business and in assuming liability for the business’s debts o Limited Partnership – With one or more general partners and one or more
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This note was uploaded on 02/28/2010 for the course AEM 2200 taught by Professor Perez,p.d. during the Spring '07 term at Cornell University (Engineering School).

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Chapter 5 - Business Mgmt. Chapter 5 Basic Form of Business...

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