MGM101H5 Lecture Notes - Lecture 5: Sole Proprietorship, Limited Partnership, Double Taxation
MGM101
May 22, 2018
Anthony M
Lecture 5
Takeaways:
• List the advantages and disadvantages of sole proprietorships
• Describe the advantages and disadvantages of partnerships
• Discuss the advantages and disadvantages of corporations
• Define and give examples of corporate mergers
• Outline the advantages and disadvantages of franchises
Review:
Pesoal Pojets: These ae pojets otiated y a sigle peso’s isio ad idea. Upo the
end of a visionary the personal project. Not always sustained over a long peiod
Opeatioal Iitiaties: eshapig the opay’s odel to e oe effiiet ad sustaiale
- Adding refill water bottle stations
Philanthropy: having wealthy individuals influencing an initiative or vision via money. Enough
money to buy certain things.
Sole Proprietorship: A business owned by a single individual.
• Amazon ran at a disadvantage for an extended period of time
• They a i o lose eeythig depedig ho the usiess tus out’
•
Disadvantages
Unlimited liability
Limited to life of owner
Euity apital liited to oe’s pesoal ealth
Difficult to sell ownership interest
Advantages
Easiest to start
Least regulated
Single owner keeps all the profits
Taxed once as personal income
Discussion
• What are realistic 10-year goals for your business?
• What are realistic 1-year goals for your business?
• What resources (both personal skills & capital) do you have?
• What is a possible sole partnership business that you could start?
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Document Summary
Takeaways: list the advantages and disadvantages of sole proprietorships, describe the advantages and disadvantages of partnerships, discuss the advantages and disadvantages of corporations, define and give examples of corporate mergers, outline the advantages and disadvantages of franchises. Pe(cid:396)so(cid:374)al p(cid:396)oje(cid:272)ts: these a(cid:396)e p(cid:396)oje(cid:272)ts (cid:373)oti(cid:448)ated (cid:271)y a si(cid:374)gle pe(cid:396)so(cid:374)"s (cid:448)isio(cid:374) a(cid:374)d idea. Upo(cid:374) the end of a visionary the personal project. Ope(cid:396)atio(cid:374)al i(cid:374)itiati(cid:448)es: (cid:396)eshapi(cid:374)g the (cid:272)o(cid:373)pa(cid:374)y"s (cid:373)odel to (cid:271)e (cid:373)o(cid:396)e effi(cid:272)ie(cid:374)t a(cid:374)d sustai(cid:374)a(cid:271)le. Philanthropy: having wealthy individuals influencing an initiative or vision via money. Sole proprietorship: a business owned by a single individual: amazon ran at a disadvantage for an extended period of time, they (cid:272)a(cid:374) (cid:449)i(cid:374) o(cid:396) lose e(cid:448)e(cid:396)ythi(cid:374)g depe(cid:374)di(cid:374)g ho(cid:449) the (cid:271)usi(cid:374)ess tu(cid:396)(cid:374)s out". E(cid:395)uity (cid:272)apital li(cid:373)ited to o(cid:449)(cid:374)e(cid:396)"s pe(cid:396)so(cid:374)al (cid:449)ealth. Partnership dissolves when one partner dies or wishes to sell. Corporation: a business created as a distinct legal entity owned by one or more individuals or entities.
