About This Chapter
Business Structures & the Economy - Chapter Summary
This chapter provides the comprehensive overview you need to gain full comprehension of business structures and the economy. Review engaging lessons to better understand sole proprietorship, corporations, the private limited company, franchises and more. Check your understanding of these topics by taking multiple-choice quizzes and a practice exam. Any questions that arise during your review of this chapter can be sent to our experts via the Dashboard. Utilizing these resources will enable you to do the following:
- Discuss organizational structures and the ownership of a business
- Share the advantages and disadvantages of a sole proprietorship
- List types of partnerships and discuss the basics of LLCs
- Explain the pros and cons of corporations
- Examine tax structures and the liability of corporations
- Define the wholly owned subsidiary and private limited company
- Describe corporate expansion, mergers and acquisitions
- Identify and discuss the opportunities and challenges of franchises
1. Organizational Structure & Ownership of a Business
There are four ways a business can be organized: sole proprietorship, partnership, limited liability, and corporation. Each form of ownership takes on a different structure with regards to tax liabilities, income, and risks.
2. What is a Sole Proprietorship? - Definition, Advantages, Disadvantages & Examples
Many businesses start out as sole proprietorships. In this lesson, you'll learn what a sole proprietorship is and its advantages and disadvantages. You'll also have a chance to reinforce your knowledge with a short quiz.
3. The Basics of Partnerships: Types & Examples
Partnerships are a common way to organize a business in the United States. In this lesson, you'll learn about different types of business partnerships and their respective advantages and disadvantages. A short quiz follows the lesson.
4. The Basics of LLCs: Limited Liability Companies
The limited liability company is one of the most popular business organizational forms for small and medium-sized businesses. In this lesson, you'll learn about the key characteristics of a limited liability company. A short quiz follows.
5. Corporations: Types, Advantages, Disadvantages & Examples
Corporations are a popular form of business organization for large and small businesses. In this lesson, you'll learn about the advantages and disadvantages of a corporation. You'll also learn about S-corporations and C-corporations.
6. Tax Structure and Liability of Corporations
A corporation is a complex business structure with unique characteristics pertaining to taxation and liability. The advantages of a corporation are subject to certain rules. This lesson explains double taxation, limited liability and piercing the corporate veil.
7. Wholly Owned Subsidiary: Definition, Advantages & Disadvantages
It's not unusual for one company to own another company. In this lesson, you'll learn about wholly owned subsidiaries, including their advantages and disadvantages. You'll also have a chance to take a short quiz after the lesson.
8. What Is a Private Limited Company? - Definition, Advantages & Disadvantages
A private limited company is one type of business structure. In this lesson, you will learn what a private limited company is and explore some of its advantages and disadvantages.
9. Corporate Expansion: Mergers and Acquisitions
Corporations can grow in two different ways: through expansion of their current business or through mergers and acquisitions. In this lesson, you'll learn about mergers and acquisitions. A short quiz follows.
10. Franchises: Opportunities and Challenges
Franchises offer a way for a person to start a proven business. In this lesson, you'll learn about franchises, including their advantages and disadvantages. You'll also learn about diversity and global challenges in franchising.
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