What are the four types of business ownership, and what do they mean?
1. Sole Proprietorship- a business owned and operated by one person
2. Partnership- the legal agreement between two or more people. The two types are general and limited
3. Corporation- legal entity created by a government stature authorizing individuals to operate an enterprise
4. Limited Liability Company- a hybrid of a partnership and corporation. All profits and losses pass directly to the owners without taxation of the business itself.
There are four main types of business ownership:
- Sole Proprietorship: A sole proprietorship is a business owned and operated by a single person. It is the most common form of business ownership, and the owner is responsible for all aspects of the company, including management, profits, and losses. The owner has complete control over the business and is personally liable for any debts or legal issues.
- Partnership: A partnership is a business owned by two or more individuals who share profits and losses. Each partner contributes to the company and transfers profits and losses based on their ownership percentage. Partnerships can be either general partnerships, where all partners are equally responsible for the business, or limited partnerships, where some partners have limited liability and are not involved in the company's day-to-day operations.
- Corporation: A corporation is a separate legal entity owned by shareholders who have limited liability for the company's debts and legal issues. Corporations are run by a board of directors responsible for making strategic decisions, and shareholders receive dividends based on their ownership percentage. Corporations have more formal requirements for record-keeping, reporting, and compliance.
- Limited Liability Company (LLC): An LLC is a hybrid form of ownership that combines a corporation's limited liability with a partnership's flexibility. The owners of an LLC, known as members, have limited liability for the company's debts and legal issues, and the company is taxed as a pass-through entity. LLCs can have either a single owner or multiple owners, and there is no limit on the number of members.
Each type of ownership has its advantages and disadvantages. The choice of business ownership will depend on the number of owners, liability, tax implications, and management structure.
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Marketing
- Charles Revson started Revlon. He once said "We sell hope." Revson was defining the ______ of Revlon cosmetics.
- Blood donations to the Red Cross are considered __________ products.
- The distribution strategy during the decline stage of PLC involves building more intensive distribution networks
- Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
- Which value proposition is difficult to sustain in the long run?
- What are perceptual positioning maps used for?
- The Westin Stamford Hotel in Singapore failed when it once advertised itself as the world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following criteria?
- A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of differentiation is this?
- The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as __________.
- Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
- One important consideration in using a differentiated targeting strategy is that ________.
- On the My M&Ms Web site, users can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using here?
- Anythinglefthanded.com.uk only sells products designed for left-handed people. Which targeting strategy is it using?
- Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as __________.
- If men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not ________.
- Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque." Which base of segmentation is being used in this example?
- ___ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
- ______ segmentation divides buyers into different segments based on lifestyle or personality characteristics
- What is positioning?
- Which of the following statements about segmentation is true?
- What is the purpose of differentiation?
- The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called ______
- The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market _____
- Market ______ evaluates each market segment's attractiveness and selects one or more segments to serve
- Which of the following is an advantage to businesses that use computer databases to manage their inventory?