Principles of Business, Marketing, and Principles of Business, Marketing, and FinanceFinanceLesson TwoLesson Two

Forms of Business OwnershipForms of Business Ownership

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Changing Employment Changing Employment TrendsTrends

• New jobs evolve while old jobs disappear.

• The U.S. has an aging population.

• Minorities are making up a larger percentage of the workforce.

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Businesses in the U.S. EconomyBusinesses in the U.S. Economy

• Employ millions of Americans

• Compensate owners and investors

• Pay taxes to federal, state, and local governments

• Make and distribute products and services needed by consumers, government, and businesses

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Three Major Categories of Businesses

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Forms of Business Forms of Business OwnershipOwnership

• Sole Proprietorship– Individuals who want to

work and make decisions independently

– Little government regulation– Great risk for the owner

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Forms of Business Forms of Business OwnershipOwnership

• Partnership– The partnership is owned and controlled

by two or more people.– Partners share an idea for a business.– Partners want to cooperate in managing

and investing, and want to share the risks and rewards of the business.

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Forms of Business Forms of Business OwnershipOwnership

• Corporation– Separate legal entity owned by one or more

shareholders and managed by a board of directors• More difficult to form• Subject to more regulations• Limited liability for investors

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Other Forms of Business Ownership

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