Title

1. Title

TITLE
FORMS OF BUSINESSES
PREPARED BY: ALEKSANDRA KYLIK

2. Introduction

INTRODUCTION
What is a Business?
* A business is an organization that provides goods
or services.
* Businesses aim to satisfy customers and earn
profit.
* There are different forms of business ownership.

3. Sole Proprietorship

SOLE PROPRIETORSHIP
Sole Proprietorship
* Owned and managed by one person.
* Easy to start and operate.
* Owner receives all profits.
* Unlimited personal liability.
Example: Local bakery or small shop.

4. Advantages and Disadvantages of Sole Proprietorship

ADVANTAGES AND
DISADVANTAGES OF SOLE
PROPRIETORSHIP
Advantages
* Simple registration.
* Full control.
* Keeps all profits.
Disadvantages
* Unlimited liability.
* Limited resources.
* Difficult to expand.

5. Partnership

PARTNERSHIP
Partnership
* Owned by two or more people.
* Partners share profits and responsibilities.
* Requires a partnership agreement.
Example: Law firms, accounting firms.

6. Advantages and Disadvantages of Partnership

ADVANTAGES AND
DISADVANTAGES OF
PARTNERSHIP
Advantages
* More capital.
* Shared decision-making.
* Combined skills and experience.
Disadvantages
* Shared profits.
* Possible conflicts.
* Joint liability.

7. Limited Liability Company (LLC)

LIMITED LIABILITY
COMPANY (LLC)
Limited Liability Company (LLC)
* Combines features of partnerships and corporations.
* Owners have limited liability.
* Flexible management structure.
Example: Small and medium-sized enterprises.

8. Corporation

CORPORATION
Corporation
* Separate legal entity.
* Owned by shareholders.
* Can raise capital by selling shares.
Examples: Apple Inc., Microsoft Corporation.

9. Advantages and Disadvantages of Corporation

ADVANTAGES AND
DISADVANTAGES OF
CORPORATION
Advantages
* Limited liability.
* Easy access to capital.
* Business continuity.
Disadvantages
* Complex regulations.
* Higher costs.
* Double taxation in some countries.

10. Franchise

FRANCHISE
Franchise
* A business model where a franchisee uses an
established brand.
* Operates under the franchisor’s rules.
Examples: McDonald’s, Subway.

11. Advantages and Disadvantages of Franchise

ADVANTAGES AND
DISADVANTAGES OF
FRANCHISE
Advantages
* Recognized brand.
* Training and support.
* Lower business risk.
Disadvantages
* Franchise fees.
* Less independence.
* Strict operating rules.

12. Cooperative

COOPERATIVE
Cooperative
* Owned and operated by members.
* Members share profits and decision-making.
* Focuses on mutual benefits.
Examples: Agricultural and consumer cooperatives.

13. Comparison of Business Forms

COMPARISON OF BUSINESS FORMS
Sole Proprietorship
* One owner
* Easy to start
* Unlimited liability
Partnership
* Two or more owners
* Shared responsibilities
* Shared profits and risks
LLC
* Limited liability
* Flexible
management
* Suitable for growing
businesses
Corporation
* Separate legal entity
* Large fundraising
opportunities
* More regulations
Franchise
* Established brand
* Business support
* Less
independence

14. Choosing the Right Business Form

CHOOSING THE
RIGHT BUSINESS
FORM
Factors to consider:
* Size of the business
* Financial resources
* Risk level
* Management preferences
* Future growth plans

15. Conclusion

CONCLUSION
* Different business forms meet
different needs.
* Each form has advantages and
disadvantages.
* Choosing the right structure is
important for success.
Thank you for your attention!