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Lecture+Notes+-+Week+1

Lecture+Notes+-+Week+1 - MGT160 Week 1 Introduction Chapter...

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1-1 MGT160 Week 1 – Introduction – Chapter 1 – Chapter 2 – Chapter 3 Forms of Business Organization Three major forms in the United States • Sole proprietorship • Partnership –General –Limited C ti 1-2 • Corporation –S-Corp –Limited liability company
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1-2 Sole Proprietorship • Advantages • Disadvantages Business owned by one person – Easiest to start – Least regulated – Single owner keeps all of the profits – Taxed once as – Limited to life of owner – Equity capital limited to owner’s personal wealth – Unlimited liability 1-3 personal income – Difficult to sell ownership interest Partnership • Advantages • Disadvantages Business owned by two or more persons – Two or more owners – More capital available – Relatively easy to start – Income taxed once as – Unlimited liability • General partnership • Limited partnership – Partnership dissolves when one partner dies 1-4 Income taxed once as personal income when one partner dies or wishes to sell – Difficult to transfer ownership
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