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Module 3: Legal/Regulatory Issues Section 1: Types of Business Ownership Overview A critical decision all entrepreneurs must make in starting a new venture is determining the type  and form of ownership structure. Such a decision is critical because it will affect all subsequent  business policies and strategies. The type of ownership structure chosen is influenced by many  factors, including:  number of owners and the type of investment each is making  the need to limit the personal liability of the owners  the need, if any, to attract additional capital or investors, who can make their investments in  the form of equity, debt, collateral, expertise, or client contacts  the importance of limiting tax liability  the importance of perpetual life of the entity  the type of industry, marketplace, or profession in which the venture is involved  As will be discussed below, ownership can take one of several forms, depending on, or driven by,  the factors cited above. Although almost 70 percent of small businesses in the United States are  sole proprietorships, this percentage is changing as more entrepreneurs, recognizing the need to  limit personal liability in an era of litigation, are opting to incorporate. In evaluating the types of  business ownership, remember that if it is advantageous, steps can be taken to change the type of  business structure. Return to top of page Report broken links or any other problems on this page. (Popup 1 linked here)   Copyright © by University of Maryland University College.   These are the popups for this section, in order of their appearance. Popup 1: /cgi-bin/id/PRD/tychosubmit.pl
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Section 1: Types of Business Ownership Objectives After completing section 1, you should be able to:  describe the various types of business ownership structures and discuss the advantages  and disadvantages of each  discuss the various types of corporations and identify advantages and factors of qualification  for each  Report broken links or any other problems on this page. (Popup 1 linked here)   Copyright © by University of Maryland University College.   These are the popups for this section, in order of their appearance. Popup 1: /cgi-bin/id/PRD/tychosubmit.pl Module 3: Legal/Regulatory Issues Section 1: Types of Business Ownership Lecture Outline I. Sole proprietorship—a business entity owned and managed by one individual. Most small  businesses in the United States are sole proprietorships. A. advantages
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This note was uploaded on 09/20/2011 for the course ACCT 221 taught by Professor Prof during the Spring '10 term at Alabama State University.

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Print a Module3 - Module 3 Legal/Regulatory Issues Section 1 Types of Business Ownership Overview . busine

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