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Business Organizations

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michelle ashmore

on 6 September 2015

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Transcript of Business Organizations

Business Organizations
How individual businesses are arranged within a certain
market structure

Sole Proprietorship
owned and run by
one person
small size
easy to start
easy to manage
keep all profits
hard to get financial help
limited life
not efficient
unlimited liability (owner is totally responsible)
owned and run by
2 or more people
General partnership: when all partners are involved in day to day operations

Limited partnership: when one partner is in charge of day to day operations
more efficient
easy to manage
better workers
easy to get start up money
limited life
responsible for other partners
unlimited liability
limited experience
owned by shareholders
(people who own a piece of stock)


run by a hired employee (CEO)
very efficient
best workers
easy to get financial help
unlimited life
limited liability (owners not totally responsible)
lots of govt regulation
hard to start-up
owners have little say
sometimes these business organizations decide to join together to make 1 bigger business.... this is called a MERGER
Vertical Merger
when 2 businesses that are involved in making different steps of a product join together

Horizontal Merger
2 businesses that make the same thing join together
Can you think of a place you shop for each type of business organization?

Sole proprietorship
75% of all businesses are
sole proprietorships

90% of what you buy is
from a corporation
Umps Fwat video
Full transcript