{"id":362,"date":"2015-04-21T20:36:45","date_gmt":"2015-04-21T20:36:45","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=362"},"modified":"2019-01-05T01:41:35","modified_gmt":"2019-01-05T01:41:35","slug":"putting-it-together-7","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/putting-it-together-7\/","title":{"raw":"Putting It Together: Business Ownership","rendered":"Putting It Together: Business Ownership"},"content":{"raw":"

Synthesis<\/h2>\r\n\"opportunity-396265_640\"<\/a>\r\n\r\nNow that you have come to the end of\u00a0this module, you should understand that there is a range of possibilities for structuring, starting, and growing a business. Each choice has its advantages and disadvantages, and there is no single set of choices that will accommodate all businesses. Just knowing that there are choices to be made and a variety of possible paths is critical to the success of any business venture\u2014large or small.\r\n

Summary<\/h2>\r\nIn this module you learned about the various legal forms for a business and the advantages and disadvantages of each. The\u00a0following are key takeaways from this module:\r\n

Choosing an Organizational Type<\/h3>\r\nSole proprietorship, partnerships, corporations, and hybrids (LLC, LLP) are all possible options for the legal formation of a business. Each structure carries risks and rewards, costs and benefits. Which\u00a0form of business ownership is best\u00a0for an individual depends not only upon\u00a0the nature of the business opportunity but also the level of personal exposure to risk the owner is willing to accept.\r\n

Sole Proprietorships<\/h3>\r\nSole proprietorships are the simplest and most common legal structure for a business. These businesses are owned and run by one person.\r\n

Partnerships<\/h3>\r\nA partnership is a single business in which two or more people share ownership. There are two general types of partnership arrangements: general partnerships and limited partnerships.\r\n

Corporations<\/h3>\r\nAlthough not the most common<\/em> form of business ownership, corporations account for the majority of the revenue<\/em> from business in the U.S. They are also the most complex type of organization\u00a0to start and maintain. Types of corporations include C corporations, S corporations, and B corporations.\r\n

Hybrid Forms of Ownership<\/h3>\r\nFortunately there are options that enable the business owner\u00a0to take advantage of limited personal liability and the benefits of partnership or corporate organization. These include the limited liability corporation (LLC) and limited liability partnership (LLP). Which type of ownership\u00a0an owner selects will largely be determined by the size, objectives, and vision for the business.\r\n

Franchising<\/h3>\r\nFor aspiring business owners who do not have the time, vision, or resources to \"start from scratch,\" franchising is a viable alternative for business ownership. Everyone is familiar with franchises\u2014many\u00a0industries such as fast food are almost wholly comprised of franchises. As appealing as this may seem, there are still risks to franchising for both the franchisor \u00a0and franchisee.\r\n

Mergers and Acquisitions<\/h3>\r\nOne of the quickest ways for a business to expand into other markets or products lines is either to merge or acquire\/purchase another company. Although this is common in today's business environment, there are still many complex factors to consider\u00a0before deciding whether a merger or acquisition is the optimal solution.\r\n

Additional Resources<\/h2>\r\nU.S. Small Business Association (SBA) website<\/a>\r\n

<\/h3>\r\n

<\/h2>","rendered":"

Synthesis<\/h2>\n

\"opportunity-396265_640\"<\/a><\/p>\n

Now that you have come to the end of\u00a0this module, you should understand that there is a range of possibilities for structuring, starting, and growing a business. Each choice has its advantages and disadvantages, and there is no single set of choices that will accommodate all businesses. Just knowing that there are choices to be made and a variety of possible paths is critical to the success of any business venture\u2014large or small.<\/p>\n

Summary<\/h2>\n

In this module you learned about the various legal forms for a business and the advantages and disadvantages of each. The\u00a0following are key takeaways from this module:<\/p>\n

Choosing an Organizational Type<\/h3>\n

Sole proprietorship, partnerships, corporations, and hybrids (LLC, LLP) are all possible options for the legal formation of a business. Each structure carries risks and rewards, costs and benefits. Which\u00a0form of business ownership is best\u00a0for an individual depends not only upon\u00a0the nature of the business opportunity but also the level of personal exposure to risk the owner is willing to accept.<\/p>\n

Sole Proprietorships<\/h3>\n

Sole proprietorships are the simplest and most common legal structure for a business. These businesses are owned and run by one person.<\/p>\n

Partnerships<\/h3>\n

A partnership is a single business in which two or more people share ownership. There are two general types of partnership arrangements: general partnerships and limited partnerships.<\/p>\n

Corporations<\/h3>\n

Although not the most common<\/em> form of business ownership, corporations account for the majority of the revenue<\/em> from business in the U.S. They are also the most complex type of organization\u00a0to start and maintain. Types of corporations include C corporations, S corporations, and B corporations.<\/p>\n

Hybrid Forms of Ownership<\/h3>\n

Fortunately there are options that enable the business owner\u00a0to take advantage of limited personal liability and the benefits of partnership or corporate organization. These include the limited liability corporation (LLC) and limited liability partnership (LLP). Which type of ownership\u00a0an owner selects will largely be determined by the size, objectives, and vision for the business.<\/p>\n

Franchising<\/h3>\n

For aspiring business owners who do not have the time, vision, or resources to “start from scratch,” franchising is a viable alternative for business ownership. Everyone is familiar with franchises\u2014many\u00a0industries such as fast food are almost wholly comprised of franchises. As appealing as this may seem, there are still risks to franchising for both the franchisor \u00a0and franchisee.<\/p>\n

Mergers and Acquisitions<\/h3>\n

One of the quickest ways for a business to expand into other markets or products lines is either to merge or acquire\/purchase another company. Although this is common in today’s business environment, there are still many complex factors to consider\u00a0before deciding whether a merger or acquisition is the optimal solution.<\/p>\n

Additional Resources<\/h2>\n

U.S. Small Business Association (SBA) website<\/a><\/p>\n

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CC licensed content, Original<\/div>