* * Basic Forms of Business Ownership Source: US Internal Revenue Service... • Public: Shares are Traded on One or More Stock Exchanges • Non-Profit: Performs Public Service, Has Specia
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Basic Forms of Business Ownership
Source: US Internal Revenue Service
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Genera l
GP
GP GP
GP
Limite d
GP
Passive Investor
Passive Investo
r Passive
Investor
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New Forms of Partnerships
• Traded Publicly
• Taxed As A Partnership
Trang 6• Difficult to
Trang 8• Public: Shares are Traded on
One or More Stock Exchanges
• Non-Profit: Performs Public
Service, Has Special Tax
Considerations to Encourage
Formation
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America’s Largest Private Companies
1. Cargill / agricultural commodities, food $66,669
2. Koch Industries / chemicals, energy, tech 60,000
3. Mars / candy, pet food electronics 19,100
4. PricewaterhouseCoopers / accounting 18,700
5. Publix Supermarket / supermarkets 18,686
Revenue 2004 (In Millions)
Source: Forbes, 2005
Trang 12Company Year Started Type of Company
J E Rhoads & Sons 1702 Conveyer Belts
Contributorship Dexter 1767 Adhesives & Coatings
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Conglomerate Vertical
Horizontal
No Relationship between companies
Trang 18Company = Collateral
Trang 21e Performanc
e Monitoring
$$$$$
Trang 22Expansion Using O.P.M.
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Trang 24• Lower failure rate
• High start-up costs
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How to Avoid a Franchise Lemon!
1. Research officers & their
4. Review franchise contract & three
most recent financial statements
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Benefits of a Home-Based Franchise