Types of Business of Ownerships
There are three types of major business ownerships. They are proprietorship,partnership, and corporations.The most common form of business is a sole proprietorship, it is a business owned by one individual who is responsible to provide the funds, resources, and managerial responsibilities to start and run a business. Next we have the most unpopular one out of the three….partnerships. Partnerships are known as a legal agreement between two or more people to be responsible for a business. There are two types of partnerships General and Limited Partnerships. A General Partnership is where partners share an equal amount of liability in profits and losses of the business;whereas Limited Partnership is where the partners have an unequal share of liability in the business, and they are responsible only for the amount they invest in. Finally, that brings us to the most common form of ownership….corporations. A corporation is the most complicated form of business ownership, they are a separate legal entity( a business that is granted a charter establishing its own rights,privileges, and liabilities distinct from those of its own members).They also form boards to act as a governing body; like hiring directors and officers to manage the business affairs. Ownerships of the corporation does not necessarily have to be people it can also be shares of stocks, bought on the stock market by stockholders.
Compare and Contrasting
Similarities between sole proprietorship, partnership, and corporations.
Differences between sole proprietorship, partnership, and corporations.
In a sole proprietorship and partnerships the owners are responsible for the business debt.
All own the assets of their business.
They all continue business even if one if the owner(s) die or retire even if an heir or someone else steps up or even purchase the business.
Usually if a corporation runs out of money its owners are not liable.
Proprietors and partners pay taxes on a personal income rate while corporations pay taxes at the corporate income tax rate.
A corporation is subject to many governmental regulations while the other two have a little more freedom.
Business: James Avery
How was the business founded?: In the summer of 1954, James Avery decided to start his jewelry business in a garage with only $250.00. He then built a workbench, bought a few tools, and scrap metal such as copper and silver. In 1957 he mailed out his first jewelry catalog with only 39 items offered. That is also the year he decided to hire his first employee. In 1965 James decided to move to his business to a 20 acre spot of land in Kerrville Texas. That is where the James Avery company headquarters was built.
What approach did he take in becoming a business owner?: James started from scratch from working in a garage with only $250.00 to then building a headquarters in Kerrville Texas where it still stands today.
Has the business always had the same type of ownership?: Yes it has, it started out with the man James Avery himself, then after 53 year as CEO/president he stepped down and gave the position to his son Chris Avery who now is the current CEO/ president.
Products and Services offered: The products offered are anything from charms & pendants, to rings, bracelets, and even necklaces. The services they provide are custom engraving, complimentary polishing of jewelry, complimentary first time soldery of charms, earrings exchange policy, gift cards, and even complimentary gift packaging!
How has the business changed?: The business now has hundreds if not thousands of selections of jewelry, they also have collections such as fall, spring, winter, and many more.
Website used: www.jamesavery.com
Business: Ben and Jerry’s
How was the business founded: It was founded in 1978 by two best friends Ben Cohen and Jerry Greenfield. They considered to sell and make bagels, but the equipment uts cost too much. So, instead of bagels they decided to open an ice cream shop in a converted gas station in Vermont known as Ben and Jerry’s.
What approach did they take in becoming a business owner?: They started from scratch. Neither Ben or Jerry had any equipment, a business, or a mentor. It was just them and a soon to be booming business.
Has the business always had the same type of ownership?: No, there is no longer a partnership. In 2001 a conglomerate known by the name of Unilever bought the business.The current CEO of the company since 2010 has been and remains to be Jostein Solheim.
What Products and Services are offered?: They offer frozen dairy products such as ice cream and ice cream cakes. Some of the services they offer is Free Cone Day, packaging and selling their products to stores, and they also give back to the community such as charity.
How has the business changed?: They now offer dairy free ice cream, added new flavors, they now have something called the flavor graveyard where you can come and “visit” the discontinued flavors.
How was the business founded?: In 1950 Sam Walton and his wife moved to Bentonville, Arkansas and opened Walton’s 5;10. Inspired by the success of his previous store he decided to open the first Walmart in 1962 in Rogers, Arkansas to invite a large crowd of customers and provide more for the customers.
What approach did they take in becoming a business owner?: The approach Sam decided to take was from scratch. He decided to proceed and build a Walmart based of off of the success of his first business.
Has the business always had the same type of ownership?: Yes, it has always been a CEO and boards to mainly run the show. The current CEO was elected in 2014 and goes by the name Doug Mcmillan.
What products and services are offered?: The products that are offered are food, clothing ; accessories, electronics, beauty, personal care, art, crafts, party supplies, pet supplies,and much more. Some of the services offered are online shopping, most stores have in store pharmacies, the ability to get your photos printed, and in some stored there is an auto department for tires, oil changes and much more.
How has the business changed?: Walmart has added online shopping, they have added a store in China, they have added Neighborhood Markets, it has opened a Culinary ; Information Center to test new products, it also has added the $4 generic- drug prescription program, the new 2 day shipping process with ordering products online, and many more.