Chapter 8.ppt Revised 4-29-10

Chapter 8.ppt Revised 4-29-10 - Defy some gravity! •

Info iconThis preview shows pages 1–19. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Defy some gravity! • http://www.youtube.com/watch?v=3g4ekwT (Idina Menzel & Kristin Chenowith) • Course Projects Due Thursday by • 1:05 p.m.!!!! Upload on ICON and save your receipt! • http://www.youtube.com/watch?v=-h76ApljN • http://www.youtube.com/watch?v=hYKYka- • (I Wish – Stevie Wonder) Jersey Boys • http://www.youtube.com/watch?v=NaXAL_ – In London • http://www.youtube.com/watch?v=WM4fMm – At the Tony Awards What’s the World Coming To? • http://www.msnbc.msn.com/id/21134540/vp Chapter 8 Business Organizations “Everyone thirsteth after gaine” • Sir Edward Coke 1532-1634 • Entrepreneurs assume the financial risks in order to make profits. • Entrepreneurs need to decide which business form to use. WHAT ARE THE ORGANIZATIONAL TYPES? • Business owners must decide which type suits their business. The type that is appropriate may change over time. Different Types • Small and simple to large and complex. Types • Sole Proprietorships • General partnerships • Limited Partnerships • Limited Liability Partnership • Corporations (C and S) • Limited Liability Companies • Professional Corporations, Limited Liability Companies, Limited Liability Partnerships Factors • Ease/Method of Creation • Legal Status • Ownership • Management and Control • Liability of Owners • Tax Considerations • Need for Capital What does limited or unlimited liability mean? • Who pays creditors and with what? • Who pays for tort damages and with what? • Who pays for employee negligence or bad acts? If there are bills to pay, am I personally on the hook? • What happens when the business can’t pay its bills? • What happens when it must pay damages for torts? • Do I have to sell my house? – My 401(k)? – My children? The Answer Depends • This issue drives many business organization decisions. Sole Proprietorship • Beauty in Simplicity Sole Proprietors – make up 2/3 of all American Businesses • Small by definition. (How many people are in a sole proprietorship?) • Owner is the business • Can do any kind of business. Usually small but can be big. Advantages to Sole Proprietorship • Receipt of all profits! • Less cost to start up • Flexible • Freedom of decision making • Easy tax filing • Pay only personal income tax • Easy retirement plans Disadvantage to Sole Proprietorships • Assumes all risk of losses and liabilities • Unlimited Liability • More difficult to raise capital. • Death Planning General Partnerships • Assumes more than one • But can have many partners • Share ownership • Share profits • Share decision making Partnership Agreement • To prevent chaos put terms in writing!...
View Full Document

This note was uploaded on 09/20/2011 for the course 06J 047 taught by Professor Staff during the Spring '08 term at University of Iowa.

Page1 / 99

Chapter 8.ppt Revised 4-29-10 - Defy some gravity! •

This preview shows document pages 1 - 19. Sign up to view the full document.

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