Partnerships LG2 OTHERS FORMS OF PARTNERSHIPS Master Limited Partnership (MLP) - Consists of having a general partner who is responsible for running the partnership, and having individual investors who are limited partners. Looks much like a corporation, but is
taxed like a partnership and thus avoids the corporate income tax. Limited Liability Partnership (LLP) - Domestic LLPs may be managed by one or more managers or one or more members. Members are only responsible for losses, up to the amount they invest and those they supervise. A California LLP generally offers liability protection similar to that of a corporation but is taxed based on the number of
members. 5-14 Advantages of Corporations LG3 HOW OWNERS AFFECT MANAGEMENT
Owners / Stockholders (select Board of Directors) Board of Directors (hire Officers) Officers (set corporate
objectives and select Managers (supervise managers)employees) Employees 5-21 Advantages of
Corporations LG3 The BIG BOYS of BUSINESS 1) 2) 3) 4) 5)
Walmart Kroger Walgreens Home Depot Target About.Com - Retail Industry - 2013
5-22 Advantages of Corporations PRIVACY PLEASE LG3
The 10 Largest Private Corporations in the U.S. COMPANY STATE INDUSTRY Cargill
MN Farming Koch Industries KS Chemicals
Bechtel CA Construction Mars
VA Food, Drink & Tobacco PricewaterhouseCoopers NY Business Services & Supplies
Pilot Flying J TN Convenience Stores & Gas Publix Super Marts
FL Food Markets Loves Travel Stops & Country Stores OK
Convenience Stores & Gas Ernst & Young NY Business Services & Supplies Reyes Holding
IL Food, Drink & Tobacco www.forbes.com 2014 5-23
Advantages of Corporations LG3 EVEN the BIG GUYS MAKE MISTAKES COMPANY BAD MOVE
Apple Maps Launched in September 2013, was a disaster, giving terrible directions, missing railway stations, and Dublin Ireland was given a new airport. Atari Amount of Surplus from a bad game was so big, that it had to be buried in a
New Mexican landfill. Blockbuster Passed on a partnership with Netflix, and went bankrupt. Hostess CEO cuts everyones salary, but his own, and goes bankrupt.
Coca Cola New Coca only lasted 77 days due to 1500 complaint calls a day. Shoebox Cards Stuff like, don't mention breasts on cards for 13-year-old girls. And don't
imply that big breasts will get you diamonds from rich boyfriends. Dennys Obamacare Surcharge John Metz, a 40-store manager, promised to add a 5% surcharge to customer bills to help pay for Obamacare. He even suggested customers reduce tips to their servers in order to pay surcharge.
This created a mess for Denny's and Metz. Customer backlash was intense, and other franchisees not involved with issue reported sales drop. Metz apologized regretting his statement after being spoken with by Dennys CEO. 5-25 Individuals Can Inorporate
OLDIES BUT GOODIES LG3 Americans Oldest Corporations COMPANY YEAR
STARTED INDUSTRY Harvard Corporation 1636 Education
J.E. Rhoads & Sons Covenant Life Ins. Philadelphia Insurance 1702 1717 1752
Conveyor Belts Insurance Insurance Dexter D. Landreth Seeds Bank of New York
1767 1784 1784 Adhesives & Coatings Seeds Banking 5-27
Advantages of Corporations LG3 MAKE WAY for the NEWBE Top New Franchises Rank
Company Start-Up Costs 1 Anytime Fitness $56.29K - $353.89K
2 Hampton Hotels $3.7M - $13.5M 3
Subway $85.69K - $262.85K 4 Supercuts $108.75K - $203.6K
5 Jimmy Johns Gourmet Sandwiches $300.5K - $489.5K 6
7-Eleven, Inc. $30.79K $1.63M 7 Servpro $134.8K - $183.44k
8 Dennys $1.17M - $2.4M 9
Pizza Hut $297K - $2.1M 10 Dunkin Donuts $294K - $1.51M
Entrepreneurs Franchise 500 2014 5-39 HOME SWEET HOME Advantages of Corporations
LG3 Top Home Based Franchises Rank Business Type Start-Up Costs
1 Security & Commodity Broker Phone, Computer, Internet & Registration Fee: $5K 2
Software Publishers Software Designing Knowledge, Phone, Computer & Internet 3 Artists, Writers & Performers
Head Shots, Portfolio & Agent Fees 4 Insurance Agents & Brokers Insurance Trained, Registered in State, Phone, Computer & Internet
5 Specialized Design Services (Graphics, Interior & Clothing) Computer, Software/3-D/Interiors, Printer, Phone & Internet 6
Consulting Services Specialty Training, Phone, Computer, Printer & Internet 7 Personal & Household Goods Repair & Maintenance
Specialty Training, Tools ($5K-$15K), Vehicle, Phone, Licensing & Insurance 8 Real Estate Agents & Brokers Specialty Training, Licensing, Insurance, Phone,
Computer, Printer & Internet 9 Electronic & Precision Equipment Repair & Maintenance Training with PC & MACs, Tools, Manuals, Computer, Internet & Software
10 Grant Making & Giving Services Computer, Software, Event Planner, Internet & Printer www.forbes.com 2014
5-46 HIGH FLYERS Advantages of Corporations 10 Top Franchises
LG3 1 Hampton Hotels 2 Subway
3 Jiffy Lube Intl, Inc. 4 7-Eleven, Inc.
5 Supercuts 6 Anytime Fitness 7
ServPro 8 Dennys, Inc. 9
McDonalds 10 Pizza Hut, Inc. Entrepenurers.com 2014 5-51
