Principles of Business, Marketing, and
Finance
Forms of Business Ownership
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Copyright © Texas Education Agency, 2011. All rights reserved.
2
Changing Employment
Trends
• New jobs evolve while old jobs
disappear.
• The U.S. has an aging
population.
• Minorities are making up a larger
percentage of the workforce.
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3
Businesses in the U.S. Economy
• Employ millions of Americans
• Compensate owners and investors
• Pay taxes to federal, state, and local
governments
• Make and distribute products and services
needed by consumers, government, and
businesses
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Three Major Categories of
Businesses
Producers
Create products and services used by other
individuals and businesses
Intermediaries
Sell goods and services
Service Business
Carry out activities that are consumed by its
customers
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5
Forms of Business
Ownership
• Sole Proprietorship
– Individuals who want to
work and make decisions
independently
– Little government regulation
– Great risk for the owner
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Forms of Business
Ownership
• Partnership
– The partnership is owned and controlled
by two or more people.
– Partners share an idea for a business.
– Partners want to cooperate in managing
and investing, and want to share the
risks and rewards of the business.
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7
Forms of Business
Ownership
• Corporation
– Separate legal entity owned by one or more
shareholders and managed by a board of directors
• More difficult to form
• Subject to more regulations
• Limited liability for investors
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Other Forms of
Business Ownership
Limited Liability Partnership & Company
Joint Venture
SCorporation
Nonprofit
Corporation
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Franchise
Cooperative
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