Types of business ownership

• Economie

How many people do you think own the businesses?

Street Vendor

Cold Store

Bapco

Chapter 6: Types of business ownership

Pages 94-98

Objective of the lesson

Identify the types of business organizations

Compare the advantages and disadvantages of different types of business organizations

Discuss the relationship between corporation and franchises.

What is a business owned by one person?

1. Business Ownership
2. Sole proprietorship
3. Corporation
4. Partnership

What is a partnership business?

How is a corporation formed?

Put a picture of a corporation you are familiar with.

Advantages of the organizations

Sole proprietors are in charge of their businesses. They can make all the decisions and run the companies as they see fit. As the sole owner, they can also keep all the profits.

 As with a sole proprietorship,
partnerships are easy to start.Unlike a sole proprietorship, it is easier for
partnerships to obtain capital.

 Limited liability holds a firm’s owners responsible for no more than the capital that they have invested in it.

Disadvantages of the organizations

A
major disadvantage of owning a sole proprietorship 

is that the owner has unlimited liability.Limited access to credit is another disadvantage.

One disadvantage is
that all the partners share the business risks. Partners also share unlimited legal and financial liability.

 They pay taxes on their income, and stockholders pay taxes on profits issued to them. 

Which advantages are common for sole proprietorship and partnership?

What is the difference between limited and unlimited liability?

Which of the organization does the government regulate?

1. Sole proprietorship
2. Franchises
3. Partnership
4. Corporation

Franchise, Cooperative, Non Profit

A franchise is a contractual agreement to use the name and

sell the products or services of a company in a designated geographic area. 

A cooperative is an organization that is owned and operated

by its members.

A nonprofit organization, or nonprofit, is a type of organization that focuses on providing a service, but not to make a profit.

What is an organization that is owned and operated by its members?

1. Cooperative
2. Franchise
3. Non profit
4. Partnership

What is the relationship between corporations and franchises?

What are some non profit organizations in Bahrain?

Give the important points of the lesson