Sole Proprietorships
An establishment formed to carry on commercial enterprise
Business Organization, Firm, or Company
Involves 2 or more people who agree on a specific division of responsibilities and profits
A partnership
Certificate of ownership in a corporation
A stock
3 corporate mergers
Horizontal, Vertical, and Conglomerates
Three minimum requirements to start a sole proprietorship
Authorization, sit permit, and name
The 3 types of partnerships
General, Limited, and Limited Liability
The 2 types of corporations
Closely Held, Publicly Held
Merger of at least 3 companies that produce completely unrelated goods or services
Conglomerate
Laws that can affect the small businesses
Local zoning laws
Most common type of partnership
General Partnership
2 advantages for a corporation
Money and Expertise and Long Life
a merger of two or more firms involved in different stages of producing the same good or service
Vertical Merger
Why small businesses usually have trouble finding and keeping long-term employees
Lack of permanence
What partners fall under if they never established their own agreements
Uniform Partnership Act
Disadvantages of a corporation
Difficulty and expense of start-up, Double Taxation, Potential loss of control by the founders, and More legal requirements and regulations
Operate in more than one country at a time
Multinational
Tax that partners pay
Just income tax