商務(wù)英語課件ch05

1、11,Introduction To Business,Chapter 5 Selecting a Form of Business Ownership 管理學(xué)院市場學(xué)系吳德亮,12,【Objectives and Requirements】 1Understand how business owners select a form of ownership,23,【Contents】 Explain how business owners select a form of ownership. Explain how the potential return and risk of a bu

2、siness are affected by its form of ownership. Describe methods of owning existing businesses.,24,【Difficult Points】 Franchising,25,Business Ownership Decisions,Advantages and disadvantages of each type of business ownership Impact of the form of business ownership on return on investment Impact of t

3、he form of business ownership on risk Methods to obtain ownership of existing businesses,26,Impact of Forms of Ownership,27,I Forms of Business Ownership,Sole Proprietorship Owned by a single owner. Partnership Co-owned by two or more people. Co-owners must register with the state and may need an oc

4、cupational license. Corporation State chartered entity that pays taxes and is legally distinct from its owners.,28,Sole Proprietors,Must be willing to accept full responsibility for firm performance Business profits are not shared with creditors Need strong leadership skills, must be well organized,

5、 and communicate well with employees,29,Sole Proprietorship,Advantages All earnings go to the sole proprietor Easy organization Complete control Lower taxes,Disadvantages Sole proprietor incurs all losses Unlimited liability Limited funds Limited skills,210,Types of Partnerships,General Partnerships

6、 All partners have unlimited liability. Limited Partnerships Some partners have personal liability that is limited to the cash or property they invested in the firm. One or more general partners who actively manage the business, receive a salary, share in profits and losses, have unlimited liability

7、. Personal earnings received from the partnership are subject to personal income taxes.,211,Partnerships,Advantages Additional funding Losses are shared More specialization,Disadvantages Control is shared Unlimited liability for general partners Profits are shared,212,Other Business Forms,S Corporat

8、ion Firm has 75 or fewer employees. Owners have limited liability, but are taxed as if the firm were a partnership. Limited Liability Corporation (LLC) Has all the favorable features of a general partnership but also offers limited liability for the partners.,213,Your Portion of Earnings (or Losses)

9、 on a Proprietorship versus a Partnership,Exhibit 2.1a,214,Your Portion of Earnings (or Losses) on a Proprietorship versus a Partnership,Exhibit 2.1b,215,Relative Contributions to Business Revenue of Sole Proprietorships, Partnerships, and Corporations,Exhibit 2.2,216,business online,217,Corporation

10、s,Individual or group must adopt corporate charter and file it with the state Describes name of the firm, stock issued, firms operations Must also establish bylaws Shareholders have limited liability Shareholders elect members of board of directors,218,Stockholders,Elect members of board of director

11、s who are responsible for establishing general policies of the firm Elect president and other key officers who run the business Earn return on investment in two ways May receive dividends Stock may increase in value,219,Corporations,Advantages Limited liability Access to funds Transfer of ownership,

12、Disadvantages High organizational expense Financial disclosure Agency problems High taxes,220,Illustration of Double Taxation,Exhibit 2.3,221,Comparison of Tax Effects on Corporations and Sole Proprietorships,Exhibit 2.4,222,Small Business Administrations Home Page,Exhibit 2.5,223,List of SBA Public

13、ations on the Internet,Exhibit 2.6,224,The Company Corporation Home Page,Exhibit 2.7,225,Private Vs. Public,Ownership of privately held corporations is restricted to a small group of investors. Publicly held shares can be easily purchased or sold by investors. Act of initially selling stock is calle

14、d “going public.” Publicly held corporations obtain additional funds by issuing new common stock.,226,II Impact of Ownership on Return,Return on Investment (ROI) After-tax earnings represent the return in dollars to the business owners. Return on Equity (ROE) Reflects earnings as a proportion of the

15、 firms equity Equity is the total investment by the firms stockholders.,227,Return on Equity for The Childrens Place,Exhibit 2.8,228,Impact of Ownership on Risk,Risk represents uncertainty about the firms future earnings Depends on future revenues and expenses Sole proprietorships tend to be riskier

16、 than larger businesses, such as partnerships and corporations. Limited funding restricts ability to diversify and spread business risk,229,III Ownership of Existing Business,Assuming Ownership of a Family Business Purchasing an Existing Business Assess expertise Compare expected benefits with initi

17、al outlay Be cautious about basing future earnings expectations on historical data Franchising,230,231,Franchising,Business owner (franchisor) allows another (the franchisee) to use its trademark, trade name, or copyright, under specified conditions. Each franchise operates as an independent busines

18、s. Typically owned by a sole proprietor.,232,Well Known Franchises,McDonalds Thrifty Rent-a-Car System Mail Boxes Etc. Dairy Queen Super 8 Motels Inc. TGI Fridays Pearle Vision Inc. Baskin-Robbins,233,Types of Franchises,Distributorship 特許經(jīng)銷，專賣店 Dealer is allowed to sell a product produced by a manu

19、facturer. Chain-Style Business 特許連鎖，直營店 Firm is allowed to use the trade name of a company and follows guidelines related to the pricing and sale of the product. Manufacturing Arrangement 特許制造 Firm is allowed to manufacture a product using the formula provided by the franchisor.,234,Franchises,Advan

20、tages Proven management style Name recognition Financial support,Disadvantages Sharing profits Less control,235,B2B Franchises,Franchises serving other businesses that have grown substantially: Hiring services Consulting services Training services Require smaller initial investment because they can

21、be operated by computer from a home office.,236,Ownership of Foreign Businesses,Purchase a franchise created by a U.S. firm in a foreign country Return may be higher than in U.S. if there is less competition Purchase a business being sold by the foreign government Reputation for inefficiency often leads to low prices Can be high risk due to instability of foreign government,237,Summary,Entrepreneurs can select a form of ownership: Sole proprietorship Partnership Corporation Return and risk depend on form of business ownership. Common met