Lesson 3
Business
Ownersh
ip
Mr. Jeffrey Robert A. Bayani
Objectives:
• Identify the different types
of business ownership
• Explain the advantages of
different types of business
ownership
Let's watch
this
5 Types of Business Ownership
1.Sole Proprietorship
2.Partnership
3.Corporation
4.Limited Liability
Company
5.Franchise
Sole
Proprietorship
• Is an unincorporated business that
has just one owner who pays
personal income tax on profits earned
from the business.
• Many sole proprietors do business
under their own names because
creating a separate business or trade
Partnership
A partnership is a form of business where two
or more people share ownership, as well as
the responsibility for managing the company
and the income or losses the business
generates.
That income is paid to partners, who then
claim it on their personal tax returns – the
business is not taxed separately, as
Corporation
A corporation is a legal entity that is separate and
distinct from its owners.
Under the law, corporations possess many of the
same rights and responsibilities as individuals.
They can enter contracts, loan and borrow money,
sue and be sued, hire employees, own assets, and
pay taxes.
Limited Liability
A limited Company
liability company (LLC) is a
business structure in the U.S. that protects
its owners from personal responsibility for its
debts or liabilities.
Limited liability companies are hybrid
entities that combine the characteristics of a
corporation with those of a partnership or
Franchise
A franchise is a type of license that grants a
franchisee access to a franchisor's proprietary
business knowledge, processes, and
trademarks, thus allowing the franchisee to
sell a product or service under the franchisor's
business name.
In exchange for acquiring a franchise, the
franchisee usually pays the franchisor an initial
Reflection Time!
What type of
business ownership
are you seeing
yourself venturing
into in the future?
Thank
you!
