07GottBusnOrgShow

07GottBusnOrgShow - Business Ownership and Organization...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Ownership and Organization Sole Proprietorships Partnerships Corporations Unlimited and Limited Liability
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Business Ownership and Organization Three main types: Proprietorships Partnerships Corporation Advantages of each form. Disadvantages of each form.
Background image of page 2
Sole Proprietorships and Partnerships Unlimited liability Owner(s) responsible for all debts incurred by the business. Owners’ personal wealth is at risk.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Corporation Legal identity -- separate from owners (the shareholders). An independent “artificial person.” Can sue and be sued. Limited liability : liability of each shareholder limited to value of shares Primary legal responsibility: maximize value of stockholder shares.
Background image of page 4
Potential disadvantages of corporations Separation of top executives and investors Management in stronger position to control the corporation. (Also owns stock.) “Pump and dump:" corporate executives artificially inflate stocks and securities to sell shares at higher
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '07
  • Bergstrom
  • Corporation, Sole Proprietorships, corporate structure, Stock Common Stock, Proprietorships Partnerships Corporations

Page1 / 14

07GottBusnOrgShow - Business Ownership and Organization...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online