Forms of Business Ownership

[GitauSimon]

🎯 Key Takeaways for quick navigation:

00:00 *🏢 Forms of Business Ownership Overview*
- Overview of the three most common forms of business ownership: sole proprietorship, partnership, and corporation.
- Introduction to basic business terms and concepts.
- Discussion on incorporation process and the role of a corporation's board of directors.
02:06 *👨‍💼 Sole Proprietorship Advantages and Disadvantages*
- Advantages include ease of startup, pride of ownership, retaining all profits, no special taxes, and flexibility.
- Disadvantages comprise unlimited liability, lack of continuity, limited ability to borrow, sole management burden, and difficulty in hiring employees.
05:24 *👥 Partnership Structure and Considerations*
- Explanation of general partners and limited partners in a partnership.
- Discussion on partnership agreements, including duties, investments, profit sharing, and dissolution procedures.
- Advantages cover ease of startup, availability of capital, personal interest, combined business skills, and retention of profits, while disadvantages involve unlimited liability, management disagreements, lack of continuity, and frozen investments.
12:49 *🏦 Corporation Formation and Types*
- Overview of what a corporation is and its legal rights.
- Differentiation between closed and open corporations.
- Explanation of stockholders' rights, corporate charter, and the role of the board of directors.
21:52 *💼 Advantages and Disadvantages of Corporations*
- Advantages include limited liability, ease of raising capital, ease of transfer of ownership, perpetual life, and specialized management.
- Disadvantages involve difficulty and expense of formation, government regulation, conflict within the corporation, double taxation, and lack of secrecy.
26:14 *🔄 Alternative Forms of Business Ownership*
- Explanation of S corporations, limited liability companies (LLCs), and not-for-profit corporations.
- Discussion on their characteristics, advantages, and differences compared to traditional corporations.
28:39 *📈 Corporate Growth Strategies*
- Overview of growth from within and mergers and acquisitions as strategies for corporate growth.
- Definition and examples of mergers, acquisitions, and hostile takeovers.
- Importance of growth for businesses and its impact on executives' roles and responsibilities.

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[mattfoley]

What kind of business can I form while living in my van down by the river?