Organization Review

Organization Review

Unit 2

Basic forms of ownership

-Sole Proprietorship

-Partnership

-Corporation

-Franchise

-LLC

-S Corporation

Multiple Choice

Single owner who manages the company

• Sole proprietorship

• Partnership

• Limited Liability Company

• Corporation

Open Ended

What are some advantages and disadvantages of sole proprietorship?

Advantages & Disadvantages of Sole Proprietorship

• Advantages: Less paperwork, only one tax return, complete control

• Disadvantages: Can't go into business with another person, personally responsible for legal trouble or debt.

Multiple Choice

A business in which two or more persons combine their assets and skills. Co-owners of a business for profit

• Sole Proprietorship

• Partnership

• Limited Liability Company

• Corporation

Multiple Select

Advantages of Partnership (select all that apply)

• Pooled skills and abilities

• Sources of Capital increased

• Can act quickly in decision making

• Lower tax burden than corporations

Advantages & Disadvantages of Partnership

• Advantages: Skills & Abilities pooled, sources of capital increased, lower tax burden than corporations, reduction in competition
• Disadvantages: Unlimited financial liability, disagreement among partners, uncertainty

Multiple Choice

Licensing arrangement under which a franchisor allows franchisees to use its name, trademark, products, and business methods.

• Sole Proprietorship

• Partnership

• Franchise

• Corporation

Multiple Choice

Persons or entities granted a franchise to market or sell a the goods or services, usually under a franchise agreement.

• Franchise

• Franchisees

• Sole Proprietor

• Franchisor

Multiple Choice

the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product

• Franchise

• Franchisee

• Franchisor

• Sole Proprietor

Open Ended

FRANCHISE HUNT

You are to use www.entrepreneur.com, which is the website for Entrepreneur Magazine. Click on the Franchise link and browse through the many franchise opportunities listed. track down the following information:

1. Name of the franchise:
2. Brief overview/history of company:
3. Description of the franchise’s products/services:
4. Number of US franchises:
5. Number of foreign franchises:
6. Number of company owned stores:
7. Franchise fee:
8. Royalty fee (might be presented as on-going):
9. Required cash liquidity & Location of corporate headquarters:

Poll

Would you ever consider owning a franchise?

• Yes

• No

Open Ended

Would you ever own a franchise...

Why or Why not?

Multiple Choice

A legal entity that is separate and distinct from its owners. owners are shareholders and have stock certificates representing their ownership in the firm.

• LLC

• Corporation

• Partnership

• Franchise

Multiple Select

Disadvantages of a Corporation (Select all that apply)

• More Cost to start up

• Double taxation

• Each owner is bound by the other

• More complex to organize

Advantages and Disadvantages of Corporation

• Advantages​

  - Easier to raise money​

  - Easy to expand​

  - Losses limited to investment​

  - Able to offer stock

• Disadvantages​

  - More cost to start up​

  - Double Taxation​

  - More regulations to follow​

  - More complex to organize​

  ​

Multiple Choice

not a corporation in and of itself; it is a legal form of a company that provides limited liability to its owners but enjoys the perks of a major corporation.

• Corporation

• Partnership

• Franchise

• LLC

Multiple Choice

Managers make all the decisions affecting their departments.

• Line

• Line and Staff

• Team

• Matrix

Multiple Choice

Employees work in a department but can be temporarily assigned to a project team

• Line

• Line and Staff

• Matrix

• Team

Multiple Choice

Some organizations add staff positions to support Managerial Positions

• Line

• Line and Staff

• Matrix

• Team

Multiple Choice

Focuses employee efforts on projects to respond faster to customer needs and wants

• Line

• Line & Staff

• Team

• Matrix

Poll

Would you rather work for a decentralized management team or centralized management team?

• Decentralized

• Centralized

Multiple Choice

A few top managers do all major planning and decision making.​ Research shows that this type or organization cause problems in some companies.

• Decentralized

• Centralized

Poll

How do you feel about Business Management

• Awesome

• ok

• bad