A significant disadvantage of owning a sole proprietorship is the overwhelming time commitment often required of the owner.
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Canada is by far the most popular target for American franchisers seeking to establish franchises in other countries.
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Compared to partnerships and a sole proprietorship, a major advantage of the C (conventional) corporation as a form of business ownership is that it has the ability to raise more money.
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In a leveraged buyout, the managers of a firm, its employees, or other investors borrow funds to buy out the firm's stockholders.
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In the late 1990s, firms found it easier to grow market share by merging with other companies or acquiring new companies.
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Any debts or damages incurred by a firm organized as a sole proprietorship are the responsibility of the owner.
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The most popular type of business for franchising is restaurants.
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The income generated by S-corporations passes through to its owners, and each is taxed individually for this income.
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When investors successfully take a firm private, the firm's stock is no longer sold to investors on the open market.
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A vertical merger unites firms at different stages of related businesses.
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Sole proprietorships are taxed at the owner's personal tax rate.
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The purpose of a farm cooperative is to give members more economic power as a group than they would have as individuals.
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The strategy of investors who are attempting a leveraged buyout is to use debt to finance the buyout of the firm's stockholders and gain control of the firm themselves.
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An advantage of the corporate form of business when compared to sole proprietorships and partnerships is the limited liability of owners.
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A master limited partnership (MLP) is taxed like a partnership.
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A corporation receives its charter from a state government.
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One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set up a limited liability partnership.
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To many businesspeople, one of the major attractions of a sole proprietorship is the chance to be their own boss.
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Double taxation means corporations pay tax on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.
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A good reason why partners should spell out the details of their partnership agreements in writing as a written agreement will help reduce misunderstandings and disagreements among the partners.
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When a sole proprietor dies, the sole proprietor's heirs have the option of taking over the business.
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One attractive benefit of a corporation is that corporations can attract employees by offering stock options.
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The major attraction of S corporations is that they avoid the problem of double taxation.
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One result of taking a firm private is the firm's stock is no longer available for purchase on the open market.
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One disadvantage of corporations is the initial cost of formation.
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Owning and operating a franchise in a different country may require the owner to adapt to social and cultural differences.
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When two companies in the same industry agree to become one firm, the result is called a horizontal merger.
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A separation between ownership and management is most likely to occur in a corporation.
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Compared to a sole proprietorship, an advantage of a general partnership is the ability to pool financial resources.
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An entrepreneur who wishes to start a business with little delay or hassle, and who wants to be his or her own boss, should organize the business as a sole proprietorship.
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