1. Aysel Muradli Firuza Safarova Sama Belyani Nigar Zeynalova



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Forms of Ownership

Forms of Ownership



  1. 1. Aysel Muradli Firuza Safarova Sama Belyani Nigar Zeynalova

  2. 2.  Main forms of business ownership  Special forms of business ownership  Additional forms of business ownership 2

  3. 3. 3 Main forms Sole proprietorship Partnership Corporation

  4. 4.  Definition A business that is owned by one person.  Most common in retailing, service, and agriculture. 4 •Sole proprietorship •Partnership •Corporation

  5. 5. Advantages •Ease of Start-up and Closure •Pride of Ownership •Retention of All Profits •Flexibility of Being Your Own Boss •No Special Taxes Disadvantages •Unlimited Liability •Lack of Continuity •Lack of Money •Limited Management Skills •Difficulty in Hiring Employees 5 •Sole proprietorship •Partnership •Corporation

  6. 6.  Definition- A voluntary association of two or more people to act as co-owners of business for profit 6 •Sole proprietorship •Partnership •Corporation

  7. 7.  General Partnership Both Partners are liable for everything the business does  Limited Partnership One or more general partners manage the business, limited partners invest money o Master limited partnership Owned and managed like a corporation, but often taxed like a partnership 7 •Sole proprietorship •Partnership •Corporation

  8. 8. Advantages • Ease of Start-up • Availability of Capital and Credit • Personal Interest • Combined Business Skills and Knowledge • Retention of Profits • No Special Taxes Disadvantages • Unlimited Liability • Management Disagreements • Lack of Continuity • Frozen Investment 8 •Sole proprietorship •Partnership •Corporation

  9. 9. Definition- An artificial person created by law, with most of the legal rights of a real person. 1. Closed Corporation Stock is owned by relatively few people and is not sold to the general public. 2. Open Corporation Stock can be bought and sold by any individual. 9 •Partnership •Corporation •Special forms

  10. 10. Advantages • Limited Liability • Ease of Raising Capital • Ease of Transfer of Ownership • Perpetual Life • Specialized Management Disadvantages • Difficulty and Expense of Formation • Government Regulation and Increased Paperwork • Conflict within the Corporation • Double Taxation • Lack of Secrecy 10 •Partnership •Corporation •Special forms

  11. 11. S-corporation LLC Not-for-profit corporation 11

  12. 12. S-corporation Corporation (limited liability) Partnership (tax) S corporation A corporation that is taxed as though it were a partnership. •Main forms •S-Corporation •LLC 12

  13. 13.  No more than 100 stockholders  There can be no nonresident-alien stockholders  All stockholders must agree to the decision to form S-corporation S-corporation Double taxation Limited liability Restriction on the number of owners/stockholder •Main forms •S-Corporation •LLC 13

  14. 14.  A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership Limited-liability companies Double taxation Limited liability Restriction on the number of owners/stockholder •S-Corporation •LLC •Non profit 14

  15. 15.  A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit.  Top 5 successful non profit organizations  United Way  Feed the Children  Gifts in Kind  Americares  The Red Cross Not-for profit corporations •LLC •Non-profit corp. •Additional forms 15

  16. 16. Cooperatives Joint venture Syndicates 16 Additional Forms of Business Ownership

  17. 17.  A cooperative is an association of individuals or firms whose purpose is to perform some business function for its members.  In Azerbaijan, coorperatives are mainly formed in agriculture sector. 17 •Special forms •Coorperatives •Joint Venture

  18. 18. 18 & •Coorperatives •Joint Venture •Syndicates A joint venture is an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time.

  19. 19.  A syndicate is a temporary association of individuals or firms organized to per-form a specific task that requires a large amount of capital. Syndicates are used most commonly to underwrite large insurance policies, loans, and investments. 19 •Coorperatives •Joint Venture •Syndicates

  20. 20. Thank you for attention 20

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