2. Types of Ownership
Do you or anyone you know own a
company?
What kind of company is it?
3. Types of ownership
Sole proprietorship
Partnership
Corporations
Subchapter S corporations
Limited Liability companies (LLC)
Multinational corporations
4. Sole Proprietorship
A type of business ownership in which
one person owns the business.
Examples:
Dairyhaus
???
5. Sole Proprietorship
Advantages:
You are your own boss
Limited paperwork/regulations
You get profits
Disadvantages:
Unlimited liability
Limited capital
Governments differ
Global competition
6. Partnership
A type of business in which two or
more people own the business.
Examples:
Law firms
Doctors offices
???
7. Partnership
Advantages:
Partners bring different skills
More capital
Disadvantages:
Breaking up is hard to do
Partners are fully liable
Partnerships overseas are difficult
8. Corporations
A type of business ownership in which
many people, whom the law treats as
one person, own the business.
9. Corporations
Closely held: private corporation in
which shares are owned by a
small group.
Example: banks
Publicly held: corporation in which
shares are sold openly in stock
markets.
Microsoft
10. Corporations
Characteristics:
Board of directors/officers
Stockholders elect board
Stockholders make money
Dividends: a % of the profit
Increase stock value
11. Corporations
Advantages:
Limited liability
Business continues to exist no matter who owns
stock
Disadvantages:
Costly to start up
Paperwork
Takeover possibilities
Double taxation
12. Subchapter S corporations
A corporation that is taxed like a
partnership
The business owners pay taxes from
personal earnings.
Examples:
restaurants
13. Limited Liability Company
A company whose managers and
owners enjoy limited liability and some
tax benefits
14. Multinational Corporations
An organization that operates in more
than one country. MNC’s aka: global,
transnational or worldwide companies
or corporations
Examples:
McDonalds
Burger King
15. MNC’s
The original place of business for a
company is the home country
When the company builds operations
in another country it becomes an MNC
The foreign country is the host country
Larger role in the world economy than
simply an exporter
16. MNC’s continued
Successful MNC’s
Create universal products
Design HR policies to include global
workers
Good guests in all countries
Economic and political power
17. Citations
Donald Baack, Ph.D., International Business. The McGraw-
Hill Companies, Woodland Hills, California, 2008
Lindenmuth, Janet. Law Library Books. Digital image. Flickr.
Yahoo, 12 Jan. 2012. Web. 25 June 2012.
<http://www.flickr.com/photos/j3net/6685194971/>.
401K 2012. Tax. Digital image. Flickr. Yahoo, 9 Nov. 2010.
Web. 25 June 2012.
<http://www.flickr.com/photos/68751915@N05/6355404323/>.
Microsoft Office Clip Art