Business Ownership: Chapter 2 Notes

• These are study notes for Chapter 2: Types of Business Ownership

Sole Proprietorship

• Type and Definition: Business owned and run by one person, where there is no legal distinction between the owner and the business entity.
• Financial advantage is that the owner receives all profit
• Advantage is that the owner makes all business decisions
• Advantage is achieving great satisfaction
• A disadvantage is performing too many tasks (accounting, clean up)
• A disadvantage is not getting the right people and seeing correct supplies
• Another disadvantage is that banks are unwilling to provide big funds
• Tea 4g trucks is an example of a real life sole proprietorship
• Nails by Kour Nail tech is an example of a real life sole proprietorship
• Bracelet designers is are an example of a real life sole proprietorship

Partnership

• Type and Definition: Owned by 2 or more people working together to run a business.
• Advantage is raising more start up money and having not had to worry entirely alone
• Advantage is having more people to combine resources and knowledge
• Advantage is better borrowing potential and the ability to add money into it by selling shares to expand
• Disadvantage is potential for disagreement and conflict
• Disadvantage includes personal property is coined (Limited liability), should a civil owner
• Facebook is an example of a real life partnership
• NEEA is an example of a real life partnership
• Lunchery's (Unlimited Liability) is an example of a real life partnership

Corporations

• Type and Definition: Owned and controlled by shareholders
• Type and Definition: Private - a few people control all the shares or stock 90 turnover the business; shares are not listed on the stock exchange
• Type and Definition: Public - raise money by making shares available to the public
• There is limited liability for shareholders, who can only lose their investment
• Shares are easier to sell than partnership interests
• The more capital you invest, the more well it counts if shearchacters can'go for profit from to sell t ece of this sheade
• Crown Corporations are businesses created by the municipal, provincial, or federal government: CBCS, Canada Post, jard
• A wealthy owner may pay tax twice
• Taxes tend to be higher
• Profit (dividended) for spirit made to aumes and shearcharder
• Air Canada is an example of a real life corporation
• Royal Bank of Canada is an example of a real life corporation
• Tesla and Toyota are examples of real life corporations
• Directors may cater to shareholders

Co-Operative

• Type and Definition: A business owned and operated by a group of individuals for their mutual benefit.
• Members have control, with each member generally having one vote.
• Profits are distributed among the members based on their involvement with the co-op.
• Credit Unions are an example of a real life Co-Operative

Franchise

• Type and Definition: Where a franchisor licenses their establishment to a franchisee to operate as their business.
• Franchisee comes with money to show
• Ongoing monthly charges / fees
• Territory / areas that franchisee sell too
• Franchisees have to ask franchisor about how to sell it
• Franchisee gets grand pricing and ideas
• The franchisor has to manage training, employee training and supplies
• Franchisees get selective store locations / site benefits with high people counting
• Turn key, n central franchise is established
• Starbucks is an example of real life franchise
• Second cup coffee are examples of real life franchise