Understanding business 10th chapter 5 how to form a business

• Master Limited Partnership MLP - Consists of having a general partner who is responsible for running the partnership, and having individual investors who are limited partners.. Look

• Master Limited Partnership (MLP) - Consists of

having a general partner who is responsible for running

the partnership, and having individual investors who are

limited partners Looks much like a corporation, but is

taxed like a partnership and thus avoids the corporate

income tax

• Limited Liability Partnership (LLP) - Domestic LLPs may be managed by one or more managers or one or

more members Members are only responsible for losses,

up to the amount they invest and those they supervise A California LLP generally offers liability protection similar to that of a corporation but is taxed based on the number of members.

OTHERS FORMS OF PARTNERSHIPS

Partnerships

LG2

5-14

HOW OWNERS AFFECT

Board of Directors (hire Officers)

Officers (set corporate objectives and select managers) Managers (supervise employees)

Employees

5-21

The BIG BOYS of BUSINESS

About.Com - Retail Industry - 2013

The 10 Largest Private Corporations in the U.S.

COMPANY STATE INDUSTRY

PricewaterhouseCoopers NY Business Services & Supplies

Love’s Travel Stops &

Ernst & Young NY Business Services & Supplies

EVEN the BIG GUYS MAKE MISTAKES

Advantages of

Corporations

LG3

5-25

COMPANY BAD MOVE

Apple Maps Launched in September 2013, was a disaster, giving terrible directions,

missing railway stations, and Dublin Ireland was given a new airport

Atari Amount of Surplus from a bad game was so big, that it had to be buried in a

New Mexican landfill

Coca Cola New Coca only lasted 77 days due to 1500 complaint calls a day

This created a mess for Denny's and Metz Customer backlash was intense, and other franchisees not involved with issue reported sales drop Metz apologized regretting his statement after being spoken with by Denny’s CEO

OLDIES BUT GOODIES

Harvard Corporation 1636 Education

J.E Rhoads & Sons 1702 Conveyor Belts

Covenant Life Ins 1717 Insurance

Philadelphia

Insurance 1752 Insurance Dexter 1767 Adhesives & Coatings

D Landreth Seeds 1784 Seeds

Bank of New York 1784 Banking

MAKE WAY for the NEWBE

Top New Franchises

HOME SWEET HOME

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